The Nigerian Education Loan Fund (NELFund), established by the Federal Government of Nigeria to ease the financial burden of tertiary education, has disbursed ₦104.2 billion to students in public tertiary institutions. This scheme has proven to be a notable intervention in addressing funding challenges nationwide for higher education. According to data provided by NELFund, the funds have been distributed through institutional and living expenses loans. ₦33.9 billion has been allocated to 320,837 students for institutional fees, paid directly to the institutions, while ₦70.2 billion has been disbursed as maintenance to 292,897 students, helping them cover living expenses.
Furthermore, the scheme’s zero-interest policy and flexible repayment plans have greatly relieved learners and their families. Beneficiaries have shared how the scheme enabled them to pay tuition fees, meet day-to-day expenses, and focus more on their academics without worrying about financial constraints. Parents have also lauded the program for lifting the financial burden of tuition and upkeep costs off their shoulders. For many, it has been a transformative experience, making Higher Education accessible to learners who might otherwise have had to forgo their academic aspirations due to financial limitations.
Legal reforms enhance education access as past beneficiaries repay loans.
Meanwhile, the NELFund’s establishment and success are rooted in the Student Loans Access to Higher Education Act. Signed into law after extensive deliberations by the Senate and House of Representatives, the Act repealed the earlier 2023 Legislation and formalised the NELFund as a corporate entity responsible for managing and disbursing credits. The law authorises the NELFund to provide financial assistance for tuition, fees, upkeep, and even vocational training, ensuring that eligible Nigerian youths can pursue higher education without being held back by financial difficulties. This legal backing underscores the government’s commitment to promoting educational equity and empowerment.
Also, the repayment Culture is gaining traction, with former beneficiaries of older Student Loan schemes setting a remarkable example. Notably, Adegboyega Awomolo, a Senior Advocate of Nigeria, refunded ₦2 million to the fund to acknowledge a credit he received during the 1970s. Similarly, Lanre Laoshe, a former legislator, repaid ₦3.18 million, exceeding the original credit amount from 1976 to 1979. These moves reflect a growing awareness of the importance of repaying debts, helping to sustain the fund for future beneficiaries. They also serve as a motivational reminder to current recipients to approach borrowing responsibly.
Sensitisation efforts are ongoing to amplify student loan awareness.
However, the managing director of NELFund, Akintunde Sawyerr, has proactively promoted awareness of the fund. He has visited tertiary institutions nationwide, educating learners on the program’s benefits and accessibility. Through these efforts, NELFund addresses misconceptions about student credit schemes, emphasising their role as a tool for Empowerment rather than a financial burden. Learners are encouraged to take advantage of the scheme to enhance their academic performance and secure better opportunities in the future. For many Nigerian families, the cost of Tertiary Education is overwhelming, with only a small percentage able to save enough to meet these expenses.
Therefore, the scheme bridges the gap, offering a seamless solution for those who may not qualify for scholarships or grants. It also helps them balance work and study more effectively. Instead of taking on multiple jobs to cover tuition and living expenses, they can focus on academics, resulting in better academic outcomes. Furthermore, it is a safety net during unexpected financial setbacks, such as medical emergencies or urgent academic needs. Higher education remains a powerful tool for upward mobility. Data from the National Bureau of Statistics (NBS) shows that university graduates earn more than individuals with only secondary education.
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With the potential for increased earning capacity, the financing scheme is an Investment in one’s future. For example, if a degree costs ₦4 million but boosts annual earnings by ₦500,000, the investment pays off within a decade. The NELFund ensures that financial challenges do not prevent learners from reaching their full potential by enabling access to quality education. As more learners and families embrace the program and repayment systems are strengthened, the fund is poised to sustain its impact for years. This initiative stands as a testament to the transformative power of education and the role of government in making it accessible to all.