Why Nigeria's Student Loan Scheme Is Not Restricted to the Poor, Explains NELFUND Boss

Akintunde Sawyerr, the Managing Director and CEO of the Nigerian Education Loan Fund (NELFUND), has explained that Nigeria's student loan scheme is open to all students regardless of family wealth. Speaking on Channels Television's Politics Today program, Sawyerr stated that parental background is often complex and should not automatically dictate a young person's access to education. He noted that even youth from wealthy families might require support, such as when parents refuse to fund their chosen courses, and argued that using the government's social register of poor citizens would dramatically shrink the list of eligible applicants.

While acknowledging that some wealthy students might benefit under this broad approach, Sawyerr emphasized that he would rather support a few who can afford it than deprive a large number of needy students through a restrictive system. He framed the fund not merely as a welfare initiative, but as an investment in the national workforce. He added that the obligation to repay the loan encourages students to make more deliberate, employment-focused choices regarding their courses and institutions.

Addressing repayment concerns, Sawyerr clarified that the loans do not pose an excessive burden because repayment is strictly linked to employment. Beneficiaries are expected to begin repayment two years after completing the National Youth Service Corps, but only if they have secured a job. Under this system, employers deduct 10 percent of the beneficiary's salary, and these deductions stop if the person becomes unemployed. If they do not have a job, they are not required to make payments.

Since its inception, NELFUND has received approximately 1.8 million applications, processing 1.659 million and funding just under one million beneficiaries. The fund has disbursed about N355 billion, which includes N162 billion in upkeep payments and N192 billion for institutional charges across 319 government-owned institutions. Sawyerr highlighted that research has shown a 20 percent reduction in dropout rates, while a study by DAWN indicated an 84 percent retention rate among beneficiaries, strengthening the case for maintaining wide access to the scheme.