Mr. Akintunde Sawyerr, Managing Director of the Nigerian Education Loan Fund (NELFUND), has revealed that approximately ₦400 billion will be required annually to provide comprehensive student loan coverage across both public and private tertiary institutions in Nigeria.
Speaking on TVC’s Dissecting Nigeria Student Loan Scheme, Sawyerr addressed the massive scaling required to move beyond current funding levels. To date, the scheme has disbursed over ₦86 billion to more than 449,000 beneficiaries, but the MD noted that expanding the reach to include private institutions would require a nearly five-fold increase in annual funding.
In response to concerns over mismanagement, Sawyerr emphasized that NELFUND has bypassed traditional middlemen structures. “Previously, it was difficult to trace funds, but now payments go straight to the institutions’ accounts and student bank accounts,” he stated, noting that this direct traceability is designed to curb the diversion of public funds.
The scheme is currently under intense scrutiny following whistleblower reports of institutional malpractice. Sawyerr confirmed that the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) have launched investigations into allegations that some institutions are withholding disbursement information or retaining funds to accrue interest.
While Sawyerr declined to name specific schools, he confirmed that these investigations have already led to “arrests, recoveries, and detentions.” NELFUND has issued a stern warning to institutional heads, labeling the concealment of loan information as “unethical” and a punishable offense under the Student Loan Act.
The 2024 Act mandates that repayment begins two years after the completion of the National Youth Service Corps (NYSC), provided the beneficiary has secured employment. Under the law, employers are required to deduct and remit 10% of the employee’s salary toward the loan.
Despite the current friction with some institutions, Sawyerr maintained that the fund remains the government’s primary vehicle for making higher education accessible to every Nigerian child, regardless of their financial background.
