NELFUND disburses N23bn to 128 tertiary institutions, individuals

NELFUND disburses N23bn to 128 tertiary institutions, individuals
NELFUND disburses N23bn to 128 tertiary institutions, individuals

Odinaka Anudu 

January 3, 2025

Top 7 Best international student loans of 2024
Share


The Nigerian Education Loan Fund (NELFUND), the official federal government agency in charge of student loans in Nigeria, has disbursed a total of N23 billion to several individuals and 128 tertiary institutions in Nigeria.


Speaking to senior journalists in Lagos recently, Akintunde Sawyerr, managing director, NELFUND, disclosed that N18 billion has been channelled to the institutions while about N5 billion has been disbursed for students’ upkeep.


“So far, we have had 326,000 individuals apply for the loan,” he said.


“A total of about N23 billion has left our account and gone to the accounts of the institutions and the accounts of individuals,” he noted.


NELFUND was set up by the federal government to ensure that students who are in school do not drop out due to lack of funds.


Students register for the loans online, and all the approval process happen online.


“NELFUND is saddled with the responsibility of providing loans to Nigerian citizens who are able to gain admission, or already have admission into tertiary institutions owned by the government, both at federal and state ownership levels.

“So, students who are Nigerian citizens, who are either already in those institutions or in future gain admission into institutions, can apply for loans. And we can provide those loans for their tuition or their institutional charges, and we are also able to provide them with stipends, or pocket money, if you like,” he disclosed.

He said applications occur only once a year, noting that once accepted, NELFUND pays monthly upkeep to the students directly to their bank accounts.

“We’re also saddled with the additional responsibility of vocational and skills training to Nigerians who are interested or have the capacity to go and take on education on the skills side and handcrafts. So, we can also provide loans for those sorts of candidates at government-approved institutions,” he said.


On sources of funding, NELFUND MD noted that the law stipulates that the agency will be funded by receiving 1 percent of the Federal Inland Revenue Service (FIRS)’s collections.

Related News
Naira records second marginal gain in new year
Port Harcourt, Warri refineries: NNPC invites Obasanjo for facility tour
How Nigeria can sustain gains of reforms in 2025
“So, we think that will end up being something like N19 billion or so. This agency should receive about N194 billion.”

He further said that the law allows the agency to solicit for funds from other sources.

“One is to solicit for funds from other sources. So, it may be those who want to invest in education in Nigeria, not necessarily for a financial return, or those who want to donate either to the Fund across the board or for specific types of applicants.

“We also have the power to invest the funds that we have for return. So there are many opportunities for us to grow the funds and to try to make it sustainable.

Read also: How we plan to sustain students loan beyond Tinubu – Sawyerr, NELFUND Boss

“We already have certain interventions that have been made. The Economic and Financial Crimes Commission (EFCC), for example, donated N50 billion in proceeds of crime. We also have had a directive to TETFund to provide us with N141 billion, of which they’ve given us N71 billion.

“We’ve had an appropriation of N60 billion, of which we’ve received N10 billion, and we are expecting another N50 billion. And, then, I believe there’s a bill going through the National Assembly at the moment where we’ll be receiving, I think, 20 percent of TETFund’s proceeds. So there are funding sources.”

He noted that NELFUND will not put pressure on graduates to repay the loans unless they get jobs.

“There’s no obligation on the loanees to repay the loans until two years after they have completed their NYSC. And even after two years, there’s no obligation to repay the loans unless a person has a job.


“Two years after NYSC, there’s a reporting requirement for us to know what the status of the individual is. If they don’t get jobs for the next 10 years, which is not the plan, then they don’t pay the NELFUND any money. Additionally, the obligation to repay is on the employer who is obliged by law to give us a proportion of the funds that they are paying as a salary to the employee.

“Our guidelines have determined that to be 10 percent. So, even after this two-year moratorium, it’s designed to ensure that the employer, who’s really benefiting from the intervention of Nelfund, is the one obliged to take 10 percent and repay the fund.”

Share
Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp


YOU MIGHT ALSO LIKE
News
Nigeria’s airspace now with enhanced surveillance — NCAA
With enhanced surveillance, Nigeria's airspace is safer now- NCAA 
News
Borno suspect 1
MJTF arrests suspect with IED items in Borno
News
Ekiti Airport gets NCAA’s approval to begin non-scheduled flight operations December 15
NCAA assures safer airspace with enhanced surveillance 
Recommended for you

Wall Str. Legend Warns: "Strange Days Are Coming to America"
Wall Str. Legend Warns: "Strange Days Are Coming to America"
Hedge funds and billionaires are already moving their money. Big banks are quietly raising bonuses
Sponsored | Chaikin Reports
businessday logo
Business Day, established in 2001, is a daily business newspaper based in Lagos. It is the only Nigerian newspaper with a bureau in Accra, Ghana. It has both daily and Sunday titles. It circulates in Nigeria and Ghana

Read More...

More
For Digital Adverts : [email protected]
Call Us :08033225506 , 08026011296, 07013338794
WhatsApp Us : 08068545123
Advert And Rates
Copyright
Other Pages
BDFX
BusinessDay Conferences & Events
BD Foundation
BusinessDay Intelligence
About Us
BDLEAD
Naira plummets to N1,780/$1 as traders blame speculators
Naira records second marginal gain in new year
Jan 03, 2025
NNPC responds to Obasanjo with call to inspect Port Harcourt, Warri refineries
Port Harcourt, Warri refineries: NNPC invites Obasanjo for facility tour
Jan 03, 2025

How Nigeria can sustain gains of reforms in 2025
Jan 03, 2025
Nollywood script writing fails to match screen success
Nollywood’s 12-month haul sets stage for 2025 success

https:// businessday. Com/ NELFUND - disburses- N23bn- to- 128- tertiary- institutions/