The Managing Director and Chief Executive Officer of the Nigerian Education Loan Fund, Akintunde Sawyerr, has described demand for student loans as “overwhelming,” saying the scheme has become a lifeline for students struggling to finance their education.
Speaking on Channels Television’s Sunday Politics, Sawyerr said many students were barely able to remain in tertiary institutions before the intervention of the loan scheme.
“The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions. They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them,” he said.
Sawyerr disclosed that NELFUND had so far disbursed ₦162bn in upkeep allowances, adding that the agency was analysing demand and disbursement figures to determine the scheme’s growing financial requirements.
He said the programme was also beginning to influence competition among tertiary institutions as students gained greater financial flexibility in choosing where to study.
Sawyerr dismissed allegations that NELFUND favours children of All Progressives Congress members, describing the claim as “completely ridiculous.”
He said the system was designed without political or other forms of bias, with beneficiaries selected according to established eligibility criteria.
The NELFUND boss also said research showed that the scheme had contributed to a 20 per cent reduction in student dropout rates.
On repayment, Sawyerr said beneficiaries would not be subjected to undue pressure, noting that repayment was structured around their ability to pay.
He also disclosed that funds recovered by the Economic and Financial Crimes Commission, which President Bola Tinubu announced would support the student loan scheme, had not yet been received by NELFUND.
The student loan scheme, established under the Student Loans Act signed by President Tinubu in April 2024, provides interest-free financial support to eligible students in public tertiary institutions, covering approved institutional charges and upkeep allowances. Repayment is scheduled to begin two years after completion of the NYSC programme.