ABUJA, Nigeria — The National Assembly and the Nigerian Education Loan Fund (NELFund) have commenced efforts to expand the student loan scheme, with a target of increasing direct beneficiaries from 1.6 million to seven million across the country.
The move was announced on Monday at a national sensitisation programme on student loans organised by the Senate Committee on Tertiary Education and TETFund in collaboration with NELFund. The event brought together lawmakers, education stakeholders, and student leaders to discuss strategies for broadening access to the scheme.
The student loan programme, established under the Student Loan (Access to Higher Education) Act, was designed to provide interest-free loans to Nigerian students pursuing tertiary education. The scheme aims to remove financial barriers that prevent many qualified students from accessing higher education due to poverty or family circumstances.
Speaking at the event, Senate Committee Chairman on Tertiary Education, Senator Muntari Dandutse, disclosed that the current beneficiary count stands at 1.6 million students. He expressed confidence that the expansion target of seven million is achievable with adequate funding, improved awareness, and streamlined application processes.
Senator Dandutse explained that the National Assembly is committed to increasing budgetary allocations to NELFund in upcoming appropriation bills. He noted that education remains a critical tool for national development and that no Nigerian student should be forced to drop out of school due to lack of funds.
The Chairman also called on state governments to complement federal efforts by establishing similar loan programmes at the sub-national level. He argued that while the federal scheme covers federal institutions, states should take responsibility for students in state-owned universities, polytechnics, and colleges of education.
Managing Director of NELFund, Akintunde Sawyerr, in his presentation, outlined the operational framework for the expansion. He stated that the fund is leveraging technology to simplify loan applications, reduce processing times, and ensure that disbursements reach beneficiaries without unnecessary delays.
Sawyerr further disclosed that NELFund has partnered with several commercial banks to facilitate the seamless transfer of funds to students’ accounts. He added that repayment mechanisms have been designed to be flexible, allowing graduates to begin repayment two years after completing the National Youth Service Corps (NYSC) programme, with deductions made directly from their salaries.
The NELFund boss also addressed concerns about loan default, assuring the public that robust tracking systems have been put in place to monitor beneficiaries. He noted that defaulters would face legal consequences, including being blacklisted from accessing any future credit facilities from financial institutions in Nigeria.
The sensitisation programme also featured testimonials from current beneficiaries who shared how the loan scheme has transformed their educational journeys. One student from the University of Abuja narrated how the loan enabled her to pay her tuition fees after her father lost his job, allowing her to continue her studies without interruption.
Education stakeholders present at the event applauded the expansion initiative but also raised concerns about the carrying capacity of Nigerian tertiary institutions. Some argued that increasing the number of loan beneficiaries without corresponding expansion of infrastructure, lecture halls, hostels, and teaching staff could lead to overcrowding and reduced quality of education.
The Academic Staff Union of Universities (ASUU) has previously called for caution, warning that access without quality is meaningless. The union urged the government to invest simultaneously in expanding infrastructure and recruiting more lecturers to accommodate the anticipated influx of students.
Civil society organisations working in the education sector have also called for transparency in the implementation of the expansion. They urged NELFund to publish regular reports on the number of applications received, approved, and disbursed, as well as the repayment status of graduates who have completed their service year.
The Federal Government, through the Ministry of Education, has expressed full support for the expansion. Minister of Education, Dr. Tunji Alausa, in a goodwill message delivered at the event, reaffirmed President Bola Tinubu’s commitment to ensuring that financial constraints do not prevent any Nigerian child from accessing quality higher education.
As the expansion efforts gather momentum, the National Assembly has promised to conduct oversight hearings to monitor progress. For now, millions of Nigerian students who have previously been excluded from the scheme due to limited slots now have reason to hope.
