The administration of President Bola Tinubu has announced that it is developing criteria to recover loans distributed to students under the Nigerian Education Loan Fund (NELFUND). This initiative aims to ensure that beneficiaries of the loan program fulfill their repayment obligations, a concern raised by many Nigerians about the sustainability of the policy.
Earlier reports by SaharaReporters in June revealed that Senate President Godswill Akpabio announced the selection of at least 30,000 students from various tertiary institutions nationwide to benefit from NELFUND. The program is part of the government’s efforts to support higher education by providing financial assistance to undergraduates.
NELFUND CEO Akintunde Sawyerr recently confirmed that the fund has received an additional N50 billion from the Economic and Financial Crimes Commission (EFCC) and has disbursed N2.9 billion in loans for tuition fees to over 27,000 students across 19 higher education institutions in Nigeria. However, it has been noted that none of these institutions are in the South-East, while at least one institution from each of the other five geopolitical zones has been included.
Addressing concerns about the exclusion of South-East institutions, NELFUND spokesperson Nasir Ayitogo clarified that the distribution of funds was not based on geopolitical considerations. He explained that only institutions that responded to NELFUND’s verification process were included in the disbursement.
In a live broadcast on Channels TV, Minister of Education Tahir Mamman emphasized that the funds provided are loans, not grants, as some Nigerians had speculated. He assured the public that the government is committed to establishing repayment criteria to ensure the sustainability of the program.
“At the moment, these are loans, not grants. This is just the beginning phase, and the government is aware of the need for a structured repayment plan,” Mamman said. “NELFUND is currently working on the criteria for loan recovery, and I believe that this aspect will be addressed promptly.”
The Minister also clarified that the loan scheme would not extend to students attending private universities. According to him, the program is currently focused on public institutions due to the assumption that private university students generally have greater financial support from their parents.
“It is only appropriate to agree for now that this loan should be applicable to students in public institutions,” Mamman stated. “The ‘private’ element implies a certain level of financial capability among parents. Moreover, the loan amount is far less than what private university students typically pay for tuition and upkeep. For now, and in the foreseeable future, this loan will be available only to those in public institutions.”
The government’s efforts to develop a comprehensive loan recovery strategy are seen as crucial for the long-term success and viability of the Nigerian Education Loan Fund.
