WorldStage Newsonline (Abuja)– Since the Federal Government came up with the Nigerian Education Loan Fund (NELFUND) initiative to mitigate the effect of the ongoing economic reform policies on higher education, many Nigerians, especially parents of students in higher institutions in the country have continued to be skeptical and dismissive of it.
In a bid to prioritize higher education in Nigeria, President Bola Tinubu signed the Student Loan (Access to higher Education) bill into law on April 3, 2024. He officially announced and launched the Nigerian Education Loan Fund (NELFUND) on July 17, 2024 to enable eligible Nigerians have access to higher education without significant barriers. This signaled a historic shift in higher education financing in Nigeria.
The purpose of the student loan scheme is to provide interest-free loans to eligible Nigerians for higher education, vocational training and skills acquisition, with the goal of enhancing access to these opportunities by eliminating financial barriers as well as reducing financial stress on students and families. By offering financial support, NELFUND also aims to ensure that financial constraints do not prevent qualified students from pursuing or completing their studies.
According to a report by Dr Uzor Ngoladi, Senior Research Fellow at Athena Centre for Policy and Leadership, over 453,687 students have applied for the loan as of January 1, 2025 with a total of over N20 billion (N20, 075,050,006.55)having been disbursed to 192, 906 students from the following institutions and geopolitical zones.
The report shows that in the North Central, 25,859 students in 18 higher institutions have benefitted the sum of about N23b (N2,534,78,588.00)to be specific. In the North East, 48,449 students in 25 higher institutions have received about N4b (N3, 942,065,487.00); In the North West, 59,187 students in 24 tertiary institutions have been disbursed with about N6b (N5,841,198,505.80); In the South East, 10,525 students in 19 institutions of higher learning have benefitted a total sum of over a billion naira (N1,334,643,576.00); In the South West, 33,707 in 29 higher institutions have received the sum of over N5b (N5,009,770,619.75); while in the South-South, 15,179 students of 19 higher institutions have benefitted the sum of over N1b (N1,412,590,230.00).
Yet criticisms and skepticism from Nigerians, including those for whom the scheme was designed to benefit, have not ceased. Why the skepticism about the scheme? Some say Nigerian government by character hardly fulfill promises or implement policies while many others say government promises or policies are usually driven by politics/electioneering interest, which once achieved leads to archiving promises made or policies enacted.
Even the Managing Director, Nigerian Education Loan Fund, NELFUND, Mr. Akintunde Sawyerr, has himself said that students from the Southern part of the country have been skeptical and doubtful in applying for the loan fund. “I think there’s been a lot of skepticism, generally and I think the most skeptical parts of the country is in the south. They question everything; is it true? Is it real? Is it a scam? We’re trying to ensure that people know that this is not a trick, it’s not a game. Mr. President has backed this with cash and we’re going to disburse that cash. So I think we’ll see the skepticism that you can find mainly in the southern part begin to disappear when we start paying out.”
As further affirmation of government genuineness of purpose and commitment to the initiative, NELFUND on Tuesday again officially released a guideline tagged “The Guidelines for Public Tertiary Institutions on the administration of the landmark Student Loan Scheme established under the Student Loans (Access to Higher Education) Act, 2024.”
A statement signed by Mrs. Oseyemi Oluwatuyi, Director, Strategic Communications, Nigerian Education Loan Fund (NELFUND) said the guidelines provide a clear framework for universities, polytechnics, and colleges of education to support the seamless implementation of the student loan programme, ensuring transparent, inclusive, and accountable processes for Nigerian students seeking financial support for their education.
The guidelines also provide that applicants must be Nigerian citizens with valid admission into an Eligible Tertiary Institution (ETI) and provide key identification such as NIN, BVN, and JAMB details.
It further provides that on application all loan requests will be processed via the NELFUND online portal (www.nelf.gov.ng), requiring accurate personal, academic, and KYC information.
On loan disbursement the guidelines states that approved loans will be disbursed directly to institutions to cover tuition and institutional charges, adding that optional upkeep allowances may be paid directly to students.
The guidelines require beneficiaries of the loan to begin repayment two years after completing NYSC or exemption, with 10% of income remitted monthly under PAYE or self-employment models.
It further provides as follows: “Institutions are obligated to verify applications within 20 working days, process refunds where necessary, and comply with reporting requirements. Breaches may attract sanctions, including suspension from the scheme.
“The Fund commits to fairness, equity, non-discrimination, and strict compliance with Nigeria’s Data Protection Act 2023.”
Beside the attitude of mistrust against government on the loan scheme, there are also concerns by some Nigerians that the scheme could become a debt trap for graduates, potential for corruption and mismanagement of funds, lead to fraudulent practices like inflated institutional fees and unjustified unauthorized deductions, lack of direct disbursement to students, and fears about the high unemployment rate that may hinder repayment.
However, there are real cases of students who have testified to the reality of the loan fund and claimed their education have been save by the loan scheme which they have benefitted from themselves. Among these beneficiaries who volunteered identity is Imran Sulaiman, a 400-level Mass Communication student of the Federal University of Kashere, Gombe State, painted a picture of struggle, one familiar to thousands of students nationwide. “Life can be difficult for an undergraduate like me who solely relies on my parents,” he said. His father, a retired journalist, had done his best, but the financial demands of university life were unrelenting.
The NELFUND initiative was more than just tuition coverage; it was the difference between uncertainty and stability. “At the end of every session, my mind is not at rest whenever I think of paying my tuition fee, accommodation, and feeding,” he confessed. But now, things have changed. “The upkeep should last beyond a year. Let students consistently receive it until their graduation,” he suggested, emphasizing the need for sustainability.
Abubakar Abdulrasheed, a 500-level student at Usmanu Danfodiyo University, echoed similar sentiments. “Having the opportunity to access the loan improves and raises our standards of living,” he acknowledged. He heard about it through the media and saw it as an opportunity to support his education. “It makes things flexible,” he said, appreciating how it covered study materials, data, and foodstuffs.
For Usman Shamsudeen Atanda, an undergraduate student of Education Economics, the loan is more than financial assistance, it is a shield against dropping out.
“Many students are surviving through this loan, especially the upkeep. We call it students’ survival when it enters,” he revealed, laughing at the phrase that has become common among beneficiaries.
But despite the success stories, the road has not been entirely smooth. Some students faced skepticism before applying. “At first, I thought it was a scam,” Abdulsamad admitted. “But when I saw many people apply, I didn’t hesitate.” His doubts dissolved once the funds arrived, proving that the initiative was indeed real and impactful.
Umar Farouk, the student representative on the NELFUND board, believes the initiative is fulfilling a long-awaited promise. “Children of nobody can now access higher education easily,” he declares, reflecting on President Tinubu’s campaign pledge. “With access to student loans, everyone now has the ease to go to school.”
Amid the student voices, the official stance from NELFUND painted a picture of ongoing improvements. A students’ news medium, PEN PRESS UDUS, quoted Mustapha Iyal, the Executive Director of Operations, NELFUND, as admitting that verification has been a challenge. “What NELFUND is trying to do is engage institutions directly by linking our activities to their portals,” he stated. The plan, he explained, was to make the loan application a seamless part of student registration, eliminating unnecessary bureaucracy.
Identifying with financial challenges faced by many Nigerian students of higher learning and the significance of NELFUND, Prof. Adegboyega Adisa Fawole, the Vice Chancellor of University of Ilorin, lamented the financial constraints faced by some students, noting that the introduction of NELFUND has brought succour to many students across the country.
While expressing concern over the difficulties students face in keeping up with their studies due to financial hardship, Prof. Egbewole noted that many students had resorted to taking up menial jobs to support themselves, while others had to suspend their education entirely due to lack of funds.
He added that despite efforts by well-meaning individuals, including some staff members of the University, to support indigent students, a significant number of them still found it challenging to continue their studies.
The Vice Chancellor also expressed concern about the low number of students that have so far applied for the loan, saying there is a significant gap between the total student population and the number of beneficiaries. He said, “The gap between the total number of students and those who have applied is still wide. We wonder why some students are skeptical about the scheme, despite our extensive awareness campaigns and sensitisation programmes. One of the concerns we frequently hear is the fear of repayment. Many students do not realize that their parents already take bank loans or cooperative funds to pay their school fees.”
While NELFUND has been described as a laudable initiative and a bold step in democratizing access to higher education in Nigeria, yet it’s facing the challenge of ensuring financial sustainability and managing student repayment, particularly given Nigeria’s high unemployment rate and the risk of a debt trap for graduates. Other challenges involve potential mismanagement and corruption, a lack of public awareness and access for all students (especially in private institutions or specific regions), and inefficiencies in the disbursement and application processes.
To overcome the challenges and its long-term effectiveness, managers of the Fund have been advised to make early-stage refinements, which include addressing disbursement inefficiencies, eligibility concerns, funding sustainability, and oversight gaps.
Policymakers are also urged to act now to fine-tune implementation by ensuring that the ambitious initiative achieves its full potential in bridging educational disparities and fostering national development.
