The Managing Director and Chief Executive Officer of the Nigerian Education Loan Fund (NELFund), Akintunde Sawyerr, has described the demand for student loans under the federal government’s scheme as “overwhelming”.
Sawyerr disclosed this during an interview on Channels Television’s Sunday Politics, saying the programme had provided vital financial support to students who might otherwise struggle to remain in tertiary institutions.
“The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions,” he said.
“They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them.”
According to the NELFund chief, the agency is analysing the rising demand and disbursement figures to better understand the financial requirements of the student loan scheme.
Sawyerr revealed that NELFund had so far disbursed ₦162 billion in upkeep allowances to students as the programme continues to expand across public tertiary institutions.
He said the scheme was also beginning to influence competition among tertiary institutions, as students gained greater financial flexibility in deciding where to pursue their education.
The NELFund boss dismissed allegations that the scheme favours children of members of the All Progressives Congress (APC), describing the claim as “completely ridiculous”.
He stressed that the system was designed to operate without political bias, adding that beneficiaries are selected based on established eligibility criteria.
On how NELFund determines students who require assistance with their fees, Sawyerr said the agency relies on available information and established processes to assess applicants and determine eligibility.
He also cited research indicating that the student loan scheme had contributed to a 20 per cent reduction in student dropout rates.
Speaking on repayment, Sawyerr maintained that beneficiaries would not be subjected to undue financial pressure, noting that the repayment structure was designed around their ability to repay.
He added that beneficiaries would become increasingly traceable as the loan repayment system develops.
Sawyerr also addressed President Bola Tinubu’s announcement that funds recovered by the Economic and Financial Crimes Commission (EFCC) would be channelled towards supporting the student loan scheme.
He clarified that NELFund had not yet received the recovered funds.
The student loan scheme was established under the Student Loans Act signed into law by President Tinubu in April 2024. It provides interest-free financial support to eligible Nigerian students in public tertiary institutions, covering approved institutional charges and upkeep allowances.
Repayment is scheduled to commence two years after beneficiaries complete the National Youth Service Corps (NYSC) programme.
