Data from the Nigerian Education Loan Fund (NELFUND) official website has shed light on the progress and challenges of access to the Student Loans (Access to Higher Education) Act, signed into law by President Bola Tinubu in April 2024. While the initiative represents a transformative step toward increasing access to higher education, its execution has exposed systemic barriers that need to be addressed. As of late 2024, 76% of registered students successfully applied for loans, with 317,652 applications approved out of 417,952 registered students.
This leaves a sizable gap of 100,300 students who were unable to obtain the loan, which can be attributed to problems like inadequate information, cumbersome application procedures, or concerns about the terms of the loan. So far, several federal and state institutions in Nigeria have received millions of Naira in disbursements for the successful applicants, which covers students’ tuition. Universities have attested to receiving these funds guaranteeing that enrolled students might finish their education. Under the NELFUND initiative, Prince Abubakar Audu University in Anyigba, for example, reported receiving ₦13.6 million, which covers for 127 students’ tuition.
Many students still depend on crowdsourcing on platforms.
Similarly, Taraba State University has confirmed the receipt of ₦400 million in funding, benefiting a large number of students. These payments demonstrate the program’s ability to lessen financial strains on students and their families, particularly at educational institutions where growing tuition prices have presented serious difficulties. Regardless, many students still depend on crowdsourcing on platforms, like X, to cover their educational expenses. This trend reflects rising tuition costs and inadequacy of loans to pay for living expenditures like housing and other essentials.
Oluwatoyin Ayodamola, Director of Programs at Reform Education Nigeria, has attributed some of the reluctance to apply for the loan to a cultural aversion to debt, which is still a major problem in Nigerian society. Many families and students would rather look for informal donations or financial aid due to concerns over long-term financial instability. Also, many Nigerians dread the social stigma attached to debt and only see loan as a last resort. Lack of knowledge about the program’s advantages and payback terms adds to this hesitancy.
Unstable employment deter many from participating.
The NELFUND repayment scheme is designed to lessen the beneficiaries’ financial strain. Repayments start two years after the beneficiary completes the National Youth Service Corps (NYSC), and their employer automatically deducts 10% of their monthly wage. For self employed beneficiaries, 10% of monthly profits made must be sent straight to the fund. Borrowers can also shorten their payback duration by making additional payments beyond the 10% threshold. Despite the tolerable nature of these terms, participation is discouraged by worries about unstable employment and uncertain earnings.
Particularly in a challenging economic environment where Unemployment and underemployment rates are still high, many students are concerned about their capacity to repay debts. In response, Akintunde Sawyerr, the Managing Director of the Nigerian Education Loan Fund (NELFUND), has been proactively visiting Nigerian universities to educate students about the advantages and flexibility of the loan program. These visits are a part of a larger initiative to raise awareness and promote program participation, particularly among students who might be reluctant due to financial or cultural concerns.
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Sawyerr’s outreach demonstrates the government’s dedication to making sure that no qualified student is left behind due to lack of awareness about the program. During these sensitization visits, Sawyerr interacts with students directly clearing up any misconceptions they may have concerning the loan program and responding to their inquiries. This practical approach is essential for removing obstacles, especially the pervasive cultural aversion of debt and anxieties about payback schedules. These initiatives are seen as crucial in closing the information gap that has kept many qualified students from applying for the loans.