NELFUND Disburses Over N116bn in Student Loans Amidst Calls for Transparency

The Nigerian Education Loan Fund (NELFUND) has disbursed over N116 billion in student loans as of January 1, 2025, benefiting thousands of students across the country. 

This was revealed during the agency’s budget defence session before the National Assembly Joint Committee on Tertiary Institutions and TETFUND in Abuja. 

Out of the total disbursed amount, N37.7 billion was allocated for institutional loans, while the remaining funds supported students directly. 

NELFUND’s Managing Director, Akintunde Sawyer, noted that out of 352,796 students who applied for the loans, only 108,484 received funding.

Despite its significant role in providing financial support to students, NELFUND has been allocated a relatively lower budget of N58.4 billion for the 2025 fiscal year. 

The budget breakdown includes N12.2 billion for personnel costs, N24.7 billion for overhead costs, and N21.4 billion for capital expenditure. 

In addition to the budgetary allocation, NELFUND received an extra N50 billion from the Economic and Financial Crimes Commission (EFCC) in August 2024.

This fund, recovered from the proceeds of crime, was directed to NELFUND by President Bola Tinubu to further boost the student loan programme.

However, the agency has faced scrutiny following allegations by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) of corrupt diversion of funds meant for the student loan scheme.

NELFUND has denied any misappropriation, adding that no funds under its custody have been misused. The ICPC later clarified that it would investigate other players in the NELFUND ecosystem.

The student loan scheme, established under the Student’s Loan Act of 2024, aims to provide interest-free loans to students in public tertiary institutions, with repayment expected to commence two years after the National Youth Service Corps (NYSC).

The initiative seeks to improve access to education and support students in covering school fees and upkeep.

As NELFUND continues its operations, stakeholders emphasise the importance of transparency and accountability to maintain public trust and ensure the success of the student loan program.