The Nigerian Education Loan Fund (NELFUND) recently announced that the student loan program has expanded to include an additional 2,120 students, bringing the total number of beneficiaries to 22,120.

NELFUND spokesman Nasir Ayitogo made the announcement in Abuja, stating that N2.5 billion in loans had been disbursed to various institutions.

“NELFUND has approved student loans amounting to over N2.53 billion benefiting 22,120 students,” Ayitogo said. He also noted that the fund aims to alleviate financial burdens on students, enabling them to continue their education.

“So far, six out of twelve institutions have received full payment of their fees, covering over 20,000 students,” Ayitogo added.

“The total disbursed to these institutions stands at approximately N2,026,163,340. The remaining institutions will receive payments next week (this week).”

Ayitogo further noted that NELFUND has commenced disbursing maintenance payments to students, having allocated N442,400,000 for the month of July.

“This initiative will support 22,120 students across the twelve institutions,” he noted, reflecting the federal government’s commitment to student well-being.

The Fund reiterated that disbursements are aligned with each institution’s academic calendar. On July 31, 2024, NELFUND released data to ensure transparency, a move supported by its Managing Director, Akintunde Sawyerr.

Furthermore, Ayitogo disclosed that an additional twelve state-owned tertiary institutions have been incorporated into the loan program, bringing the total to 48. Nevertheless, information from 121 institutions is still pending.

The expansion was made possible after the successful verification of data from these institutions. The Student Loan Act 2024 is designed to ensure that education is within reach for all Nigerian students.

NELFUND's sources of funding consist of a portion of taxes, levies, and duties collected by the Federal Inland Revenue Service, Nigerian Immigration Service, and Nigerian Customs Service, as well as contributions from government revenues, education bonds, endowment fund schemes, and donations. Repayment of the student loan commences two years after the completion of the NYSC program, with 10% of the beneficiary's salary being automatically deducted.

Reactions from ASUU and Students

The recent announcement of the expanded student loan program has elicited diverse responses from the Academic Staff Union of Universities (ASUU) and students throughout Nigeria. While the initiative seeks to mitigate financial challenges and facilitate educational attainment, opinions vary regarding its efficacy and long-term viability.

For example, the Ebonyi State University Chapter of ASUU expressed reservations about the feasibility and sustainability of the student loan scheme. During a press conference held in Abakaliki, the state capital, Ikechukwu Igwenyi, chairman of EBSU-ASUU, voiced concerns regarding the program’s implementation and potential impact.

“The education system in Nigeria has been plagued by chronic underfunding,” Igwenyi stated.

According to him, “Successive governments have allowed public primary and secondary schools to deteriorate, leaving teachers with low self-esteem and meagre salaries, often earning less than $20 per month.”

In addition, Igwenyi emphasized the adverse effects of insufficient funding on higher education institutions, cautioning that the student loan program may divert attention from addressing these underlying concerns.

“Having witnessed the destruction of basic education, it seems tertiary institutions are next,” he said.

“ASUU is calling for renegotiation, improved funding for revitalisation, university autonomy, and academic freedom.”

Furthermore, the inception of the student loan program can be traced back to 1972, during the military regime of General Yakubu Gowon. This initiative was specifically designed to provide financial assistance to students who were adversely affected by the civil war. Despite the significant amount of loans disbursed, the repayment rate has been problematic, resulting in over ₦40 million remaining outstanding. It is worth considering the potential impact if this substantial sum had been invested in the funding of tertiary institutions, as suggested by Igwenyi.

Students have also expressed their concerns through social media platforms.

Chukwuemeka Azubuike, a user on X (formerly Twitter), stated, “It is imperative for the government to begin making job provisions within the next 1 to 5 years, enabling graduates to secure employment and repay their loans.”

Aliyu Ak Balarabe, a student at the University of Maiduguri, conveyed his doubts, saying, “Many of us are verified but not approved. I am unaware of anyone who has actually received these funds.” In a similar vein,

Another X user known as “Big Jo” remarked, “It is essential to scrutinize the details of student loans. They may appear attractive, but without stable employment, one could end up repaying them indefinitely.”

Additionally, Agunloye Taiwo Hope expressed his urgency for loan approval, stating, “I submitted my application three weeks ago and have yet to receive a response. My exams are approaching. I kindly request the approval of my loan so that I can sit for my exam next month.”