The Nigeria Education Loan Fund (NELFund) has recently clarified why student loans are currently available only to students in public tertiary institutions. According to NELFund’s Managing Director, Akintunde Sawyerr, the decision was made to ensure that the limited resources of the nation are used to support as many students as possible, primarily those in public universities where tuition fees are lower.
This exclusion of private institutions has stirred mixed reactions, especially among students and stakeholders from private universities. However, Sawyerr explained that the focus on public institutions was based on the need to prioritize the most vulnerable students. He shared these insights during a recent interview on Arise TV.
“We are working with public funds, and the resources are limited,” Sawyerr explained. “Most of the students who need this support are in public schools, where fees are affordable. It’s about prioritizing and helping more people with the available funds.”
The burning question on many people’s minds is whether private university students will ever have access to these government loans. While the scheme currently excludes them, Sawyerr hinted at the possibility of expanding the program to private institutions in the future.
“When I spoke with the President, he expressed his desire that the fund should be available to all Nigerians. But you have to manage funds and start somewhere,” Sawyerr revealed. “I do not doubt that at some point in the future, it will be expanded.”
This statement offers hope to private university students, who face much higher fees. However, Sawyerr admitted that these higher fees, sometimes running into millions, make it challenging for the current funding structure to accommodate private institutions.
“We’re focused on trying to help as many as possible, rather than just a few. We have to manage the funds we have,” he added, emphasizing the need to ensure the resources reach those who need it most.
Despite the exclusion of private institutions, the loan scheme has made a significant impact on public universities. Sawyerr disclosed that NELFund has already disbursed N10 billion to about 90,970 students, with plans to disburse an additional N92 billion for the next academic session.
This massive financial support is a crucial part of the government’s efforts to ease the burden on students in public institutions. The loan scheme, which was signed into law by President Bola Tinubu in June 2023, provides interest-free loans that cover tuition fees and offer a monthly allowance of N20,000 for students’ upkeep.
The application process for the loan began in May 2024 with a pilot phase focused on federal institutions. Students who receive these loans are required to start repayment two years after completing their National Youth Service Corps (NYSC) program, but only if they are employed.
Employers will deduct 10 percent of a beneficiary’s salary until the loan is fully repaid.
One of the key issues highlighted during the interview was the regional disparity in loan applications. According to Sawyerr, more applications have come from northern Nigeria compared to other regions. He attributed this to the higher number of public institutions in the north, as well as cultural differences in attitudes toward loans.
“We noticed that a good number of people from the south study in the north and have applied. There’s a sort of geographical disparity but not by state of origin. There seems to be a lesser level of enthusiasm in the southeast, southwest, and south-south,” Sawyerr said.
This revelation has sparked discussions about the reasons for the lower participation rates in the southern regions, with some speculating that it could be due to perceptions of student loans or the structure of public institutions in these areas.
NELFund has also faced criticism over the loan application process, with some students experiencing difficulties navigating the online system. Sawyerr, however, reassured the public that the process is designed to minimize human interference and reduce corruption risks.
According to Sawyerr, NELFund uses an electronic, data-driven system that verifies applicants using unique identifiers such as their Joint Admissions and Matriculation Board (JAMB) number, National Identification Number (NIN), Bank Verification Number (BVN), and matriculation number.
“We match it with what the institution has provided us, and we know that we are dealing with an individual. It’s an IT-based system. They’re bound to have challenges, but it’s a generally simple portal to engage with,” he explained.
Although there have been challenges with the online application process, Sawyerr reassured that NELFund’s support staff are available to resolve any issues. He also highlighted the measures put in place to prevent fraud.
“We recognize that anywhere you have systems like this, you can have people attacking the site, wanting to insert ghost students, and doing identity hijacking. We are very careful to put in place processes that ensure we don’t pay people who sneak into our database,” Sawyerr stated.
Despite the benefits for public university students, private university stakeholders have voiced their displeasure with the exclusion of their institutions from the loan scheme. Prominent legal luminary Afe Babalola recently described the exclusion as unjust, arguing that private university students also deserve access to these loans.
“It is unfair to deny students in private universities the right to benefit from the loans. Education is a right for every Nigerian, and there should be no distinction between public and private institutions when it comes to access to government funding,” Babalola was quoted as saying.
His comments have reignited the debate about the role of private universities in Nigeria’s educational system and the government’s responsibility in supporting students regardless of the type of institution they attend.
The student loan scheme has already brought relief to thousands of students in public universities, but the debate surrounding its limitations continues to grow. With hints of future expansion to private institutions, many are watching closely to see how NELFund will evolve.
