In a major shift, the Nigeria Education Loan Fund (NELFUND) has announced that access to student loans will soon be restricted to specific high-demand courses. This move will limit the types of courses eligible for the Federal Government’s interest-free loans. The change has been confirmed by the Managing Director of NELFUND, Akintunde Sawyerr.
Sawyerr shared the news during a virtual conference organised by The Renewed Hope Global. The event, titled “Student Loan Masterclass: Why, What, and How?” brought together key figures in education and finance to discuss the future of student loans in Nigeria.
Currently, NELFUND provides interest-free loans to all students in tertiary institutions. However, Sawyerr revealed that the government would soon focus on funding courses that align more closely with Nigeria’s developmental needs.
He explained that the decision was motivated by the need to ensure that the loans are given to students who are studying courses that will provide them with valuable skills, particularly in fields that are essential to the country’s growth. This includes sectors like engineering, medicine, and technology.
At present, students from all disciplines, whether in their final years or just starting, are eligible for the loans. NELFUND treats all courses the same. Sawyerr added that this policy would change to avoid funding students in courses that have limited job opportunities, which could make it difficult for them to repay their loans after graduation.
“We are providing loans for people who are already in 300 and 400 levels. We don’t want to discriminate because some of them may be about to drop out,” Sawyerr said. “But there is recognition that there are some courses that Nigeria as a country needs people to have.”
He continued, “With no disrespect to anybody, language courses are less important to our national development than perhaps engineering or medical courses because they are more practical. And as a developing country, we do need skills and people to be educated to a level where they can develop the country.”
This shift is part of a broader effort by NELFUND to align student loans with Nigeria’s economic priorities. The fund aims to provide financial support for students who are pursuing qualifications that will directly contribute to the country’s development, particularly in sectors that are seen as critical for national growth.
Sawyerr pointed out that while certain fields like language courses may not be given priority, there will still be consideration for disciplines that offer exportable skills. For example, students studying fields that could lead to employment abroad, such as information technology or other technical skills, may still be eligible for loans.
He also emphasised that the new focus would not immediately affect students who have already received loans. “We don’t want to pull the rug from under students who are already relying on this support,” Sawyerr added.
So far, NELFUND has provided loans to 335,000 students across 127 tertiary institutions in Nigeria. This initiative has been seen as a major step towards improving access to education for students from low-income backgrounds. However, with the new policy shift, the loans will be targeted more carefully to ensure they are helping students pursue qualifications that will make them employable and contribute to Nigeria’s development.
The change in policy has sparked a mixed reaction. While many are in favour of focusing on high-demand courses, others worry that it could limit opportunities for students pursuing careers in the arts or humanities.
“I understand the need for Nigeria to focus on developing skills in engineering and medicine, but we must not forget the value of a well-rounded education,” said one academic who attended the conference. “While technical skills are important, creativity and critical thinking, which are often fostered in courses like language and the arts, are also key to the development of any nation.”
This shift in policy comes at a time when Nigeria’s higher education system is facing challenges, including insufficient funding, overcrowded classrooms, and a lack of adequate facilities. The government’s new approach to student loans is part of broader efforts to reform the education sector and ensure that the country’s young people are equipped with the skills they need to succeed in a rapidly changing world.
As Nigeria continues to face economic challenges, the focus on high-demand courses is expected to help address some of the country’s most pressing needs, such as a shortage of skilled workers in critical sectors. However, it remains to be seen how this will affect the broader education landscape, particularly for students in non-technical fields.
The announcement has raised questions about the future of student loans in Nigeria, particularly regarding which courses will be considered “high-demand.” It also remains unclear whether students who have already received loans for courses that may no longer be eligible will be allowed to continue receiving support.
