The Nigerian Education Loan Fund (NELFUND) is changing the game for students in need, disbursing ₦23 billion to empower education across the country. Here’s how this fund is making an impact.
- ₦18 billion allocated to 128 tertiary institutions and ₦5 billion for student upkeep.
- NELFUND’s funding ensures no student drops out due to financial struggles.
- Graduates repay loans only after securing jobs, easing financial pressure.
Education in Nigeria has received a major boost, thanks to the Nigerian Education Loan Fund (NELFUND). The fund, created by the federal government, has already disbursed ₦23 billion—₦18 billion to tertiary institutions and ₦5 billion for student upkeep.
“So far, we have had 326,000 individuals apply for the loan.”
said Akintunde Sawyerr, NELFUND’s Managing Director, during a recent press briefing in Lagos.
Students can register for these loans online, and the entire approval process is digital. The fund aims to prevent students from dropping out of school due to financial difficulties.
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“NELFUND is saddled with the responsibility of providing loans to Nigerian citizens who are able to gain admission, or already have admission, into government-owned tertiary institutions,” Sawyerr explained.
The agency also offers vocational training loans and monthly stipends to students for personal upkeep.
“We can provide them with stipends, or pocket money, if you like,” Sawyerr added.
Funding for NELFUND comes from various sources, including 1% of the Federal Inland Revenue Service (FIRS) collections and donations from organizations like the EFCC, which contributed ₦50 billion. Tertiary Education Trust Fund (TETFund) has also allocated significant sums, with more contributions expected in the future.
When it comes to repayment, NELFUND has adopted a lenient approach. Graduates only start repayment two years after completing their National Youth Service Corps (NYSC), and only if they secure jobs.
“If they don’t get jobs for the next 10 years, they don’t pay the NELFUND any money,” Sawyerr emphasized.
Employers are required by law to deduct 10% of salaries from employed graduates for loan repayment.
What do you think about this initiative? Share your thoughts in the comments below and let us know how NELFUND could improve access to education in Nigeria!
Source: BusinessDay
