Nigeria’s youth remain the nation’s greatest asset, and President Bola Tinubu says his administration is determined to give them wings to soar.
Through the Nigerian Education Loan Fund (NELFUND), Tinubu said in his 65th (Nigeria’s) Independence Day speech, said that the government is easing financial barriers to higher education, enabling young Nigerians to dream big, innovate, and build careers across science, technology, sports, and the creative industries.
So far, about 510,000 students in 228 institutions across the 36 states and the FCT have benefited, with total disbursements reaching ₦99.5 billion, including ₦44.7 billion in upkeep allowances as of September 10, the President listed as NELFUND’s achievements.
Techeconomy presents key facts about NELFUND:
What is NELFUND?
NELFUND stands for the Nigerian Education Loan Fund, the body established to administer student loans under the Students Loan (Access to Higher Education) (Repeal & Re-enactment) Act, 2024.
It is a corporate body with powers to sue or be sued, and to hold property, enabling it to carry out its mandate as an autonomous institution.
Akintunde Sawyerr is the first managing director appointed to operationalize and steer the Fund’s implementation.
Mission, Scope & Mandate
NELFUND’s core objective is to remove financial barriers for qualified Nigerian students by providing interest-free loans to cover tuition, institutional charges, and upkeep (living expenses) in public tertiary institutions and approved vocational institutions.
The loans are disbursed in two parts: institutional charges (paid directly to schools) and upkeep (paid to students) after verification.
Because public tertiary institutions operate on different academic calendars, NELFUND has clarified that upkeep payments align with academic sessions to prevent duplicate payments.
Eligibility is limited to students in public tertiary institutions (federal and state), private institutions are not yet covered in initial phases.
Timeline & Early Implementation
The enabling law was signed into effect in April 2024 by President Tinubu.
The portal for NELFUND applications opened starting May 2024.
By its first anniversary, NELFUND had disbursed about ₦56.85 billion in student loans to 298,124 beneficiaries across 198 institutions. Of that, ₦30.18 billion was for institutional (tuition) and ₦26.63 billion for upkeep.
In that same period, over 600,000 students had registered on the portal, and more than 550,000 applications were successfully processed (≈ 92% processing success).
Amount Spent & Financial Breakdown
- ₦56.85 billion disbursed in first full operational year.
- ₦30.18 billion went to institutions for institutional charges.
- ₦26.63 billion went to beneficiaries as upkeep allowances.
- The scheme has recorded hundreds of thousands of applications, with a high conversion (approval) rate.
- For example, NELFUND recently disbursed ₦6,972,000 across 10 students at the African Aviation & Aerospace University (AAAU), reflecting how the scheme is being applied even in niche institutions.
Governance, Structure, and Oversight
NELFUND is overseen by a board of directors chaired by Jim Ovie, the founder of Zenith Bank, with representation from ministries (Education, Finance), regulatory agencies, and other stakeholders.
The operational management is distinct, led by the MD (Sawyerr) and staff who execute day-to-day tasks.
Guidelines for operations, verification, disbursement, and repayments are publicly documented in official guidelines.
Challenges and Risks
Verification delays by tertiary institutions have been flagged repeatedly as a bottleneck to timely disbursement.
Because institutions have different academic calendars, aligning upkeep payments fairly is complex, risking duplications or gaps.
Ensuring sustainability is a concern: whether NELFUND can maintain funding levels if demand grows exponentially.
Risk of “debt burden” if economic conditions worsen and graduates struggle with repayment.
Tracking transparency and misuse is critical, public reporting and audit mechanisms must be strong.
Why Tinubu Highlights NELFUND as a Major Achievement
In his Independence Day speech, President Tinubu re-echoed these NELFUND’s achievements, underscoring its strategic importance in his “Renewed Hope” agenda.
The scale and rapid deployment, in just over a year, make it a flagship social program aimed at inclusion, education empowerment, and human capital development.
The disbursements and uptake already seen provide tangible evidence of delivery, helping build public trust and political capital.
========
What are the outstanding NELFUND’s achievements for you? Tell us in the comment section:
