The Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, has explained why the Fund is unable to provide its interest-free loan scheme to Nigerian students enrolled in private tertiary institutions.
Sawyerr made this clarification in Abuja while responding to calls from owners of private universities and other concerned Nigerians who have urged the Federal Government to extend the loan scheme to private institutions. He stated that NELFUND operates strictly within the provisions of its enabling law, which mandates it to provide loans exclusively to students in public tertiary institutions.
According to him, the NELFUND Establishment Act is clear in its scope and does not currently empower the Fund to cater to students in private institutions. He noted that the Fund is a product of legislation and must function in line with what the law prescribes.
The NELFUND Act 2024, formally known as the Students Loans (Access to Higher Education) Act, 2024, was signed into law by President Bola Ahmed Tinubu in April 2024. The Act replaced the 2023 version to address governance challenges and formally established NELFUND to offer zero-interest loans to Nigerian students in public tertiary institutions, covering both tuition fees and living expenses.
Since its inception, NELFUND has disbursed over N161.97 billion to tertiary institutions nationwide, benefiting more than 864,798 students. The Fund has also recorded over 1.36 million loan applications submitted by eligible students through its online portal.
Despite these achievements, the exclusion of private university students has drawn criticism from prominent Nigerians, including the Founder and Chancellor of Afe Babalola University, Ado Ekiti (ABUAD), Chief Afe Babalola, SAN. He faulted the Federal Government for setting up a student loan scheme that excludes students in private universities, questioning whether such students are not Nigerians.
Speaking at the ABUAD International Hydrogen Summit held on the university’s campus in Ado Ekiti, Babalola lamented that private universities have also been excluded from benefiting from the Tertiary Education Trust Fund (TETFund), despite private organisations contributing to its funding.
He argued that private universities, including ABUAD, have made significant strides in research and academic development but continue to be sidelined in government funding and support initiatives.
In response, Sawyerr acknowledged that while the Fund was established to ultimately support Nigerian students, implementation had to begin within defined limits. He explained that the law requires NELFUND to start with public tertiary institutions, with the possibility of expansion in the future if the law is amended.
The Executive Director of Operations at NELFUND, Mr. Mustapha Iyal, also supported this position, noting that policy implementation is often gradual. He said the government chose to begin with public institutions because it has greater regulatory control over them and can better assess the system’s effectiveness.
Iyal added that although there are ongoing discussions about including private institutions in the future, the Fund can only operate within the current legal framework.
“I know some people want private institutions included, and I’m sure the government is considering it. It may happen in the future, but I can’t say when,” he said.
