…N2.5bn disbursed to 22,120 beneficiaries
The Nigerian Education Loan Fund (NELFUND) recently reported that the student loan scheme has benefited an additional 2,120 students, raising the total number of beneficiaries to 22,120.
Nasir Ayitogo, NELFUND’s spokesman, disclosed this in Abuja, stating that loans disbursed across various institutions totalled N2.5 billion.
“NELFUND has approved student loans amounting to over N2.53 billion benefiting 22,120 students,” Ayitogo said. He also noted that the fund aims to alleviate financial burdens on students, enabling them to continue their education.
“So far, six out of twelve institutions have received full payment of their fees, covering over 20,000 students,” Ayitogo added.
“The total disbursed to these institutions stands at approximately N2,026,163,340. The remaining institutions will receive payments next week (this week).”
Ayitogo also mentioned that NELFUND has started providing upkeep payments to students, with N442,400,000 allocated for July.
“This initiative will support 22,120 students across the twelve institutions,” he noted, reflecting the federal government’s commitment to student well-being.
The Fund reiterated that disbursements align with each institution’s academic calendar. On July 31, 2024, NELFUND released data to ensure transparency, a move supported by its Managing Director, Akintunde Sawyerr.
Additionally, Ayitogo announced that twelve more state-owned tertiary institutions have been added to the loan scheme, increasing the total to 48. However, data from 121 institutions is still pending. “This expansion follows successful verification of data from the institutions,” he explained.
The Student Loan Act 2024 aims to make education accessible to all Nigerian students. NELFUND’s funding sources include a percentage of taxes, levies, and duties from the Federal Inland Revenue Service, Nigerian Immigration Service, and Nigerian Customs Service, along with contributions from government profits, education bonds, endowment fund schemes, and donations.
Repayment of the student loan begins two years after completing the NYSC programme, with 10% of the beneficiary’s salary automatically deducted.
Read also: FULL LIST: Six institutions receive N2bn students’ loan
Reactions from ASUU and Students
The announcement of the expanded student loan scheme has elicited mixed reactions from the Academic Staff Union of Universities (ASUU) and students across Nigeria. While the initiative aims to alleviate financial burdens and support educational pursuits, opinions are divided on its effectiveness and sustainability.
For instance, the Ebonyi State University Chapter of ASUU expressed scepticism about the viability and sustainability of the student loan scheme. Ikechukwu Igwenyi, chairman of EBSU-ASUU, voiced concerns during a press conference in Abakaliki, the state capital.
“The education system in Nigeria has been plagued by chronic underfunding,” Igwenyi stated.
According to him, “Successive governments have allowed public primary and secondary schools to deteriorate, leaving teachers with low self-esteem and meagre salaries, often earning less than $20 per month.”
Speaking further, Igwenyi highlighted the negative impact of inadequate funding on tertiary institutions, warning that the student loan scheme could be a diversion from addressing these fundamental issues.
“Having witnessed the destruction of basic education, it seems tertiary institutions are next,” he said.
“ASUU is calling for renegotiation, improved funding for revitalisation, university autonomy, and academic freedom.”
He also traced the origin of the student loan scheme back to 1972, under General Yakubu Gowon’s military regime, designed to aid students affected by the civil war. Despite substantial loans disbursed, repayment proved challenging, with over ₦40 million remaining unrecovered. “Imagine if that sum was invested in the funding of tertiary institutions,” Igwenyi said.
Read also: Student loan: NELFund to announce varsities that submitted data on Monday
Students also voiced their concerns on social media. Chukwuemeka Azubuike, an X (formerly Twitter) user, wrote, “Tell the government to start making provisions for jobs in the next 1 to 5 years so graduates can find work to pay back.”
Aliyu Ak Balarabe, a student at the University of Maiduguri, expressed scepticism, “Most of us are verified but not approved. I don’t know anyone who has received these funds.”
Similarly, another X user with the handle “Big Jo” wrote, “Read the fine print of student loans. They might seem appealing, but without a good job, you could be repaying them for life.”
Others, like Agunloye Taiwo Hope, are anxious for approval. “I applied three weeks ago and haven’t received mine. My exams are near. Please, approve my loan so I can take my exam next month,” he posted on X.
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