The Nigerian Education Loan Fund (NELFUND) management has raised concerns regarding the doubt expressed by students from the Southern region about the authenticity of the student loan program.

NELFUND's Managing Director, Akintunde Sawyerr, disclosed that data has shown a higher number of loan applicants from the Northern region, attributing this trend to the scepticism prevailing in the Southern region. Mr. Sawyerr made these remarks in response to a journalist's question during a recent media interaction.

The loan scheme's application process was divided into two phases, with the first phase open to students from federal government-owned tertiary institutions and the second phase for students from state-owned tertiary institutions, including universities, polytechnics, colleges of education, and mono-technics. While the exact statistics of the applications received by NELFUND are yet to be released, it is known that over 100,000 students have applied for the loan.

Nevertheless, Mr. Sawyerr pointed out that more applications have been received from Northern students compared to their Southern counterparts. He mentioned that institutions in the northern part of the country have been actively supporting their students and providing necessary data to NELFUND.

Mr. Sawyerr also acknowledged the higher level of scepticism among students in the south but expressed confidence that this would diminish once the Fund starts disbursing the loans.

 

Mr. Sawyerr, however, observed an increasing awareness and interest nationwide.

He said: “I think the most sceptical part of the country is in the south, you know, they question everything. Is it true? Is it real? Is it a scam? And I think you know, what you witnessed today with us actually just starting this disbursement programme is to say that this is no fun. This is no fun. Right? And we’re trying to ensure that people know that this is not a trick. It’s not a game.”

He further stated that NELFUND has the Fund available for disbursement to the successful applicants.

“The scepticism that you find mainly in the southern parts begins to disappear when we start paying out in terms of the three levels of institutions,” he added.

Mr. Sawyer reported that the universities received the highest number of applications, followed by the polytechnics and colleges of education.

Additionally, he clarified that applicants have the option to apply for a loan to cover their tuition fees, along with a separate loan for living expenses, or they can choose to apply solely for the tuition fees loan.

“So you can’t get a stipend unless your fees are being paid and you’re going to an institution, but you can get the fees paid and decline the loan for the stipend,” he said.

The Scheme

The Student Loan Scheme is a flagship project of President Bola Tinubu in the education sector.

Shortly after assuming office, Mr. Tinubu enacted the Access to Higher Education Act, establishing a legal framework for providing loans to financially disadvantaged Nigerians to cover tuition costs at Nigerian tertiary institutions.

The revised law, enacted earlier this year, established the Nigerian Education Loan Fund (NELFUND). NELFUND is responsible for managing all loan applications, grants, disbursements, and recoveries.

According to the Act, the Fund will receive funding from various sources and engage in productive activities.

Additional funding sources include donations, gifts, grants, endowments, and any other revenue accruing to the fund, as specified in the Act.