NELFUND disburses ₦154bn Student Loans to nearly 789,000 beneficiaries

The Nigerian Education Loan Fund (NELFUND) has disclosed that it has so far released ₦154.3 billion to support students across the country since the launch of the federal student loan scheme 19 months ago.

The Managing Director of NELFUND, Mr Akintunde Sawyerr, made this known on Tuesday during a virtual media briefing, where he revealed that 788,947 students have benefited from the scheme out of 1,265,509 applications received since disbursement commenced on May 24, 2024.

A breakdown of the figures shows that ₦82.34 billion was paid directly to tertiary institutions to settle approved institutional charges, while ₦72.02 billion was disbursed to students as upkeep allowances.

The funds were distributed across 262 public universities, polytechnics and colleges of education nationwide.

Sawyerr explained that the difference between the total number of applications and confirmed beneficiaries was largely due to duplicate entries and delays in institutional verification processes.

“Some applicants submit more than one application, which leads to double counting. In addition, institutions are required to verify that applicants are still bona fide students. While some schools respond promptly, others take longer,” he said.

He noted that the agency processes applications daily, stressing that verification and fraud prevention remain critical priorities.

According to him, the most recent dashboard data showed 3,008 new applications submitted on Tuesday alone, representing a 0.2 per cent increase from the previous day.

“Last week, we received about 50,000 applications, which is significant. Every application must be screened carefully to prevent fraud, and then grouped by institutions for confirmation. Because we are managing public funds, speed is important, but safeguarding the money is even more critical,” Sawyerr added.

NELFUND was established to administer the Nigeria Student Loan Scheme, which was signed into law by President Bola Ahmed Tinubu in April 2024.

The programme offers interest-free loans to students in public tertiary institutions to cover tuition and essential living expenses.

Under the scheme, repayment begins only after beneficiaries have completed the National Youth Service Corps (NYSC) and secured employment, a structure designed to ease financial pressure on young graduates.

Reiterating the transparency of the disbursement process, Sawyerr encouraged eligible students to take advantage of the scheme, noting that all payments are made electronically.

“Applicants must have a bank account. We do not pay cash. One portion of the loan goes directly to the institution on the student’s behalf, while the upkeep allowance is paid into the student’s account.

Institutional payments cover tuition and other approved charges, excluding accommodation, which is subject to approval by the loans committee,” he said.