Akintunde Sawyerr, the Managing Director of NELFund, indicated that there is potential for the scheme to include private institutions in the future.
Sawyerr made these remarks during an appearance on an Arise TV program, where he addressed topics such as repayment terms, the application process, and the distribution of funds.
He noted that NELFund has disbursed N10 billion to 90,970 individuals and is committed to distributing an additional N92 billion in anticipation of the upcoming academic sessions.
The Managing Director mentioned that discussions with the presidency have explored the possibility of extending the student loan program to encompass all educational institutions.
Sawyerr emphasized that the primary aim of the loan is to support the most vulnerable citizens who struggle to afford tertiary education.
“We are more likely to find these individuals in public institutions where tuition fees are lower. We are managing public funds, which are limited,” he explained.
“In my conversation with the president, he expressed a desire for the fund to be accessible to all Nigerians. However, it is essential to manage resources effectively and start with a focused approach. I believe that, in the future, the program will be broadened.”
He added, “The financial support we provide ranges from approximately N46,000 to N150,000, depending on the course of study. These amounts are often barriers preventing individuals from pursuing higher education. In private institutions, costs can escalate into millions.”
“Our priority is to assist as many individuals as possible rather than a select few. Effective fund management is crucial.”
President Bola Tinubu introduced an initial version of the student loan policy in June 2023, aimed at providing interest-free loans to students.
The initiative was set to launch in October 2023, but its implementation was postponed multiple times, ultimately rescheduled for April 2024.
On May 24, NELFUND activated the loan application portal, initiating a pilot phase exclusively for federal tertiary institutions.
The NELFund loan covers institutional fees paid directly to the educational institution, along with a monthly living allowance of N20,000 provided to the student.
Loan repayment commences two years after the recipient completes their youth service, contingent upon their employment status.
According to NELFund, 10 percent of an applicant's salary will be deducted by their employer and remitted until the loan is fully repaid.
Sawyerr reported that 373,000 individuals have registered on the fund's portal, with 284,000 applying for the loan, noting a higher volume of applications from the northern regions. "We observed that many individuals from the south are studying in the north and have submitted applications. There is a noticeable geographical disparity, though not based on state of origin. Enthusiasm appears to be lower in the southeast, southwest, and south-south regions," he remarked.
"There are varying cultural perspectives regarding loan acquisition. This scheme is not subject to boycotting. While trust issues may exist, we are actively working to address them."
When questioned about potential issues and the complexity of the application process, Sawyerr explained that NELFund has eliminated human interaction to prevent corruption.
"We are utilizing an electronic system with specific identifiers unique to each individual, such as JAMB numbers, NIN, BVN, and matriculation numbers. Applicants provide this information online," he stated.
"We cross-reference it with the data provided by the institution to ensure we are dealing with a specific individual. It is an IT-driven system. While challenges may arise, the portal is generally user-friendly. We have support staff available to assist with any issues that may occur."
This involves public funds, and we are taking the necessary time to ensure that disbursements are made to the correct recipients. Our priority is to safeguard against hacking and fraud.
We understand that systems of this nature can attract malicious actors who may attempt to manipulate the system by adding fictitious students or engaging in identity theft. Therefore, we are implementing stringent processes to prevent unauthorized individuals from accessing our database and receiving payments.