NELFUND Disburses ₦154.4 Billion Interest-Free Student Loans to Nearly 789,000 Nigerians in 18 Months

The Nigerian Education Loan Fund has disbursed a total of ₦154.37 billion in interest-free student loans to 788,947 beneficiaries across Nigeria within its first 18 months of operation, reaffirming the Federal Government’s commitment to expanding access to higher education through sustainable financing.

The Managing Director and Chief Executive Officer of NELFUND, Mr Akintunde Sawyerr, made the disclosure during a virtual media briefing with journalists, where he provided an update on the performance and impact of the national student loan scheme.

According to him, the education loan programme is designed to be transparent, inclusive and accessible to eligible Nigerian students enrolled in government-owned tertiary institutions. These include federal and state universities, polytechnics, colleges of education, as well as selected technical colleges and schools of nursing across the country.

Sawyerr revealed that as of December 9, 2025, NELFUND had received a total of 1,265,509 loan applications from students in all 36 states of the federation and the Federal Capital Territory. Out of this figure, 788,947 applications, representing 62.3 per cent, were successfully processed and disbursed.

He explained that the gap between applications received and loans approved is largely due to the continuous inflow of new applications, as well as delays and inaccuracies in data submission by applicants and their institutions. He stressed that the Fund is required to carry out detailed verification and screening within a maximum processing window of 30 days to ensure that only qualified students benefit from the scheme.

A breakdown of the disbursement shows that ₦82.35 billion was paid directly to 262 tertiary institutions nationwide to cover tuition and compulsory academic fees on behalf of beneficiaries. In addition, ₦72.02 billion was released to students as monthly upkeep allowances to support their basic living expenses while in school.

Sawyerr noted that the entire loan process is operated on a fully digitised platform developed to global standards, eliminating cash handling and enhancing transparency, tracking, verification and accountability. He reiterated that challenges faced by unsuccessful applicants are strictly linked to data irregularities or delays, not exclusion or bias.

The NELFUND chief encouraged Nigerian students to take full advantage of the student loan initiative, emphasising that it is interest-free and structured with flexible repayment terms. Beneficiaries are expected to repay only the exact amount borrowed, without added charges, through instalments that begin two years after completing the mandatory one-year National Youth Service Corps programme and securing employment.

He also disclosed that President Bola Ahmed Tinubu has indicated readiness to extend the student loan scheme to private tertiary institutions in the future. However, Sawyerr explained that current funding limitations make it impractical to include private school students at this stage.

Appealing to parents and guardians, he urged them to encourage eligible students in public institutions to apply for the loans, noting that the scheme is designed to ease financial pressure on families and allow students to concentrate fully on their academic pursuits.

Sawyerr commended President Tinubu for initiating the education loan policy, describing it as a critical reform capable of boosting tertiary education enrolment, reducing dropout rates and improving overall learning outcomes in Nigeria.