CEM REPORT, EDUCATION | The Nigerian Education Loan Fund (NELFUND) has announced a plan to disburse loans to a staggering 1.2 million students in the first phase of its student loans operation.
During an interactive session with the Education Writers Association of Nigeria (EWAN), NELFUND Managing Director, Akintunde Sawyerr, outlined the key requirements for accessing student loans. To ensure transparency and proper allocation of funds, students will need to provide the following:
National Identification Number (NIN): This crucial document serves a dual purpose. It verifies a student’s identity and aligns with the government’s broader policy of including all Nigerians in the NIN database.
Bank Verification Number (BVN): Linking the loan to a student’s BVN streamlines the disbursement process. The stipend portion of the loan will be deposited directly into the student’s verified bank account.
Unified Tertiary Matriculation Examination (UTME) Registration Number: This ensures that only registered students enrolled in accredited tertiary institutions or government-recognized skill acquisition centres can benefit from the scheme.
The initial phase of the program aims to support a significant portion of the student population. “About 1.2 million Nigerian students in tertiary institutions and government-recognized skill acquisition centres will be among the first batch of beneficiaries,” Sawyerr revealed. This broadens the scope of the program beyond traditional universities, potentially encompassing students in vocational training programs as stated in the Student Loans Act, 2024.
Furthermore, Sawyerr emphasized a meticulous application verification process to guarantee proper allocation of funds. Once approved, the loan disbursement will be divided into two parts:
Tuition Payment: NELFUND will directly pay the student’s tuition fees to the respective institution, eliminating the burden on students and their families.
Living Stipend: A separate portion of the loan will be disbursed as a living stipend to the student’s verified bank account. This aims to provide additional financial support for basic needs beyond tuition costs.
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Student Loans Application and Repayment
Sawyerr confirmed that applications will be accepted through a dedicated NELFUND website. Applicants will be required to submit their aforementioned documents and matriculation details to complete the application process.
For repayments, beneficiaries are expected to begin servicing their loans once they secure employment or establish their own businesses. This ensures responsible borrowing and fosters a culture of financial self-reliance among students.
Background
Recall an earlier CEM report, where President Bola Tinubu signed the newly revised Student Loans Re-enactment Bill, 2024 into law.
This Act paves the way for NELFUND to operate and fulfil its mandate of providing financial assistance to deserving students. While the 2023 bill focused on higher education, a closer look at the bill reveals a broader vision. The NELF’s mandate extends to providing loans for vocational training and skills acquisition programs.
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Looking Ahead
The launch of the student loan scheme signifies a positive shift in Nigerian education. By offering financial support to a vast pool of students, NELFUND has the potential to revolutionize access to quality education across the country. This initiative empowers students to pursue their academic goals without being limited by financial constraints. With a well-managed and sustainable loan program, Nigeria can look forward to a brighter future with a more educated and skilled workforce.
