The Nigerian Education Loan Fund (NELFUND) says its interest-free student loan scheme is beginning to make a measurable impact on access to and completion of tertiary education, with research indicating a 20 per cent reduction in the dropout rate in 2025.
The Managing Director of NELFUND, Akintunde Sawyerr, disclosed this on Sunday during an interview on Channels Television’s Politics Today, saying evidence from research showed that beneficiaries were more likely to remain in school and complete their studies because of the financial support provided by the scheme.
“There is some other evidence from the research that has been done that shows that we reduced by 20 per cent the dropout rate last year. There is clear evidence that this is working,” Sawyerr said.
However, the NELFUND boss did not identify the organisation responsible for the research that produced the 20 per cent figure, nor did he disclose the methodology or sample size used to arrive at the estimate.
Sawyerr also cited a recent study by the Development Agenda for Western Nigeria (DAWN) Commission, which he said found that 84 per cent of NELFUND beneficiaries were able to continue their tertiary education because of the loan scheme.
The findings, he said, underscored the role of financial assistance in preventing students from abandoning their education because of difficulties in meeting tuition and other academic expenses.
‘Every Kobo Is Audited’
Sawyerr also sought to address concerns over the management and disbursement of funds, assuring that NELFUND operates both internal and external audit mechanisms to promote accountability.
“Every single penny, every single kobo that leaves NELFUND is audited. But on top of that, it is important for me to point out to you that we never disburse cash, ever,” he said.
According to him, the fund relies on the banking system for its payments, while beneficiaries are identified through their Bank Verification Numbers (BVN), providing an additional mechanism for tracking disbursements.
“When we pay this N20,000 to students every month, it goes directly to their bank accounts. We have their BVN. We can also see what is going on in their bank account,” Sawyerr said.
He said the system was designed to strengthen transparency and minimise the risks associated with cash-based disbursements.
Students Seek Refunds
The NELFUND chief executive also addressed complaints from students who had already paid their institutional fees before receiving support from the loan scheme.
Sawyerr attributed some of the delays in refunding such students to the timing of the programme’s introduction, noting that the scheme was launched in the middle of some academic sessions.
By then, he explained, a number of tertiary institutions had already demanded and collected fees from students.
“In some cases, the schools were very, very quick and agile. They were able to make the refunds to the students. In other instances, they didn’t,” he said.
He added that NELFUND had, in some instances, brought security and investigative agencies into the process to help resolve disputes and address cases involving delayed refunds.
Over N355bn Disbursed
NELFUND was established in 2024 to provide interest-free loans to eligible students enrolled in Nigerian tertiary institutions.
The scheme is intended to ease the financial burden on students and their families while improving access to higher education for those who may otherwise be unable to afford the cost of their studies.
The fund said on September 3 that it had disbursed more than N355 billion in student loans to 1,659,853 beneficiaries out of 1,800,489 applications received.
The figures indicate that the scheme has become a significant source of financial support for students across the country's tertiary institutions, while its reported impact on dropout rates could further shape discussions around the role of government-backed student financing in expanding access to higher education.
However, the 20 per cent reduction in dropout rates cited by Sawyerr is yet to be independently assessed from the details publicly provided, as the source and methodology of the research were not disclosed.