NELFUND Student Loan Demand ‘Overwhelming’ as ₦162bn Goes to Upkeep Allowances

NELFUND CEO Akintunde Sawyerr says student loan demand has surged, with ₦162bn disbursed as upkeep allowances and dropout rates reportedly falling by 20%.

Sawyerr said the growing demand reflected the financial difficulties confronting many Nigerian students and their families, with the loan scheme helping beneficiaries remain in tertiary institutions.

He disclosed this during an interview on Channels Television’s Sunday Politics, where he described the response to the programme as “overwhelming”.

“The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions,” Sawyerr 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 him, NELFUND is currently analysing the volume of applications and its disbursement figures to determine the financial resources required to meet the increasing demand.

The NELFUND chief executive said the fund had so far released ₦162 billion as upkeep allowances to students, as the government-backed initiative continues to expand across public tertiary institutions.

Sawyerr said the intervention was also beginning to influence competition among universities and other tertiary institutions because students with access to financial support now have greater flexibility when deciding where to study.

He said the fund’s impact was not limited to financial assistance, citing research which indicated that the scheme had contributed to a 20 per cent reduction in student dropout rates.

On the eligibility process, Sawyerr explained that NELFUND uses established procedures and available information to identify students who require financial assistance.

He also dismissed allegations that the scheme favours children of members of the All Progressives Congress (APC), describing the claim as “completely ridiculous”.

awyerr stressed that beneficiaries are selected according to established criteria, rather than political affiliation or connections.

He said the system was designed “without bias”, insisting that political considerations had no place in the selection of beneficiaries.

Addressing repayment, the NELFUND boss said beneficiaries would not be subjected to undue financial pressure, as the repayment structure was designed around their ability to repay after completing their studies.

He added that NELFUND’s ability to trace beneficiaries would improve as its repayment system develops.

Sawyerr also commented on President Bola Tinubu’s announcement that funds recovered by the Economic and Financial Crimes Commission (EFCC) would be channelled into the student loan scheme.

He clarified that although the President had made the announcement, the funds had not yet been received by NELFUND.

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 students in public tertiary institutions, covering approved institutional charges and upkeep allowances.

Repayment is expected to begin two years after beneficiaries complete the National Youth Service Corps (NYSC) programme.