The Nigeria Education Loan Fund (NELFund) has explained that the government’s student loan scheme is currently limited to public tertiary institutions to ensure that the nation’s limited resources are used to support as many students as possible.

Speaking during an interview on Arise TV, the Managing Director of NELFund, Akintunde Sawyerr, revealed that the decision to exclude private institutions was driven by the need to target the most vulnerable students, many of whom attend public institutions where tuition fees are relatively low.

“We’re working with public funds, and the resources are limited. Most of the students who need this support are in public schools, where fees are affordable. It’s about prioritising and helping more people with the available funds,” Mr Sawyerr explained.

Possible inclusion of private institutions?

While the scheme is currently exclusive to public schools, Mr Sawyerr hinted at the possibility of expanding to private institutions in the future.

He said: “When I spoke with the President (President Bola Tinubu), he expressed his desire that the fund should be available to all Nigerians. But you have to manage funds and start somewhere. I do not doubt that at some point in the future, it will be expanded.”

He acknowledged that fees in private institutions are significantly higher, sometimes running into millions, “which makes it challenging for the current funding structure to accommodate them.”

“We’re focused on trying to help as many as possible, rather than a few. We have to manage funds,” he added.

Disbursement

According to Mr Sawyerr, the Fund has already disbursed N10 billion to about 90,970 students, with plans to disburse an additional N92 billion for the next academic session.

The scheme, initially signed into law by President Bola Tinubu in June 2023, provides interest-free loans to cover institutional fees and a monthly allowance of N20,000 for upkeep.