For many Nigerian youths, education has long been perceived as a privilege rather than a right. The rising cost of tuition, coupled with economic instability, has fueled skepticism about its value. Some have even questioned whether formal education is a worthwhile investment, given high unemployment rates among graduates. However, such doubts ignore a fundamental truth: education has always been a powerful tool for personal and national growth. The introduction of the student loan scheme by the Nigerian Education Loan Fund (NELFUND) is dismantling financial barriers, proving that access to higher education is no longer a distant dream but an attainable reality.
A vision for inclusion
As of December 2024, 326,000 individuals had applied for the student loan, with NELFUND successfully disbursing over N34 billion to 128 tertiary institutions. President Bola Tinubu, during the 2025 Budget presentation, reaffirmed his commitment to ensuring Nigerian students are not left behind due to financial constraints. The government’s strategic move to allocate N58.4 billion to NELFUND in the 2025 fiscal year underscores a national commitment to educational accessibility and youth empowerment.
The concept of student loans is not new. Countries like the United States, the United Kingdom, and Australia have successfully implemented similar schemes, allowing students from low-income backgrounds to access higher education. In the United Kingdom, the student loan repayment model has increased tertiary enrollment, with repayments tied to employment income. Nigeria’s adaptation of this model—linking repayments to the National Identification Number (NIN) and ensuring deductions align with post-graduation earnings—demonstrates foresight and sustainability.
Still, some question whether Nigeria’s economic climate can support such a scheme. With youth unemployment at 53.4% and many graduates struggling to find well-paying jobs, critics fear that repayment might become an unrealistic burden. To address this, NELFUND has introduced a flexible repayment structure based on income levels, ensuring that only employed graduates contribute at manageable rates.
Education as a catalyst for economic growth
Education has never been a scam—rather, systemic barriers have limited its benefits for many. The introduction of NELFUND is about more than tuition fees; it is about nurturing a generation of problem-solvers, innovators, and global competitors. The scheme extends beyond the classroom, with funds allocated for student upkeep, ensuring that beneficiaries can focus on their studies without financial instability.
A study conducted by the World Bank highlights the direct correlation between increased access to education and national economic growth. Countries that have prioritised student funding—such as Germany with its low-interest student loans and Canada’s income-contingent repayment plans—have seen remarkable improvements in workforce productivity and GDP expansion. Nigeria, through NELFUND, is positioning itself for a similar transformation, creating an ecosystem where talent meets opportunity.
Yet challenges remain. Nigeria’s tertiary institutions are plagued by infrastructure deficits, inconsistent academic calendars due to strikes, and a curriculum often criticised for lacking industry relevance. Without broader systemic reforms, the effectiveness of the student loan scheme could be diminished. Education policy experts argue that in addition to funding access, there must be a parallel commitment to enhancing the quality of education, expanding vocational training, and aligning curriculum with labour market demands.
Read also: NELFUND disburses N22b to 200,000 students, opens 2024/2025 application portal
Addressing concerns and ensuring sustainability
Despite its potential, the student loan scheme has encountered resistance from some quarters. Concerns regarding the eligibility criteria, repayment structure, and administrative bottlenecks have been raised by students and education stakeholders. Some fear that loans may become an additional financial burden post-graduation. However, NELFUND’s strategy to ensure sustainability by linking repayments to income levels and leveraging technology for transparency is a game-changer.
Akintunde Sawyerr, NELFUND’s Managing Director, has emphasised the agency’s commitment to making the scheme work beyond the current administration. By ensuring widespread participation, the program is set to become a cornerstone of Nigeria’s education system. He cites the United Kingdom’s National Health Service (NHS) model, where public buy-in has made the program untouchable by successive governments. If at least one person from every Nigerian family benefits from the scheme, it will become ingrained in society, ensuring its longevity.
However, Nigeria must learn from the failures of similar schemes in other African countries. In Kenya, for example, the Higher Education Loans Board (HELB) has struggled with loan recovery, with billions of shillings in unpaid student debt. A lack of job opportunities and poor enforcement mechanisms have weakened the scheme’s impact. Nigeria’s challenge will be ensuring a robust loan recovery framework while also fostering an economy that provides graduates with job opportunities.
Complementary initiatives for holistic youth development
The student loan scheme is only one facet of a broader vision for Nigerian youth. The Tinubu administration has also unveiled initiatives such as the $620 million Digital and Creative Enterprises (IDiCE) program, the 3 million Technical Talents Scheme, and the Skill-Up Artisans Programme (SUPA). These programs are designed to equip Nigerian youth with contemporary skills, bridging the gap between education and employability.
Furthermore, the administration’s establishment of the Consumer Credit Corporation, with over N200 billion in funds, provides an additional layer of financial security for young Nigerians, enabling them to acquire essential assets without immediate cash payments. These interventions collectively paint a picture of an administration focused on creating long-term economic opportunities for its youth.
However, the effectiveness of these programs remains to be seen. Implementation gaps, bureaucratic inefficiencies, and corruption have historically derailed similar initiatives. The government must establish clear accountability mechanisms to ensure that funds reach the intended beneficiaries and that these initiatives produce measurable results.
A call to action for Nigerian youth
The success of the student loan scheme hinges not just on government commitment but also on student engagement. More Nigerian youth must recognize the opportunity that this initiative presents. Education is no longer a privilege reserved for the affluent but a right that is now within reach. The challenge, therefore, is to leverage this financial support, excel academically, and contribute to the nation’s progress.
In a nation where access to quality education has long been a barrier to socioeconomic mobility, the introduction of NELFUND is a historic step toward inclusivity and empowerment. The responsibility now lies with all stakeholders—government agencies, educational institutions, and students—to ensure that the programme fulfills its promise. If implemented effectively, this initiative will not only transform lives but also shape Nigeria’s future as a knowledge-driven economy.
While skepticism is understandable, blind cynicism must not stand in the way of progress. Education was never a scam; now, it is more accessible than ever. The future belongs to those who dare to seize the opportunities before them.
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