The Managing Director/CEO of Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, has said that Nigerian students currently benefitting from the loan are not obligated to start repayment until two years after their National Youth Service Corp (NYSC).
Sawyerr stated this on Saturday while featuring on a TVC News program.
According to him, this applies to those who have managed to secure a job and the repayment requirements are on their employers.
He added that the employer is to be deducting 10% of the employee’s salary and remitting to the Fund monthly.
The process of repayment
Explaining the process of repayment and the duty of employers of Nigerians who have collected loans to study, Sawyerr said:
“Two years after completion of their NYSC, there is a requirement for the loans to be paid back, but the requirement to pay the loan back is on the employer.
“For those who have managed to secure jobs, the employer goes to a database, he or she checks the name and the NIN number of the person who they’re about to employ.
“Then they contact NELFUN and say we’re about to employ this person and we’re going to start making deductions from their salary to the NELFUND.
“That deduction is 10% of that individual’s salary. At no point is the obligation on the individual to pay back themselves.”
- He further clarified that those who are self-employed would repay the loans themselves.
- Sawyer also pointed out that anyone unemployed after NYSC is under no obligation to repay the loans.
Consideration for students in private schools
While noting that the law that established NELFUND does not allow it to provide loans for Nigerian students in private higher institutions, he said President Bola Tinubu is considering extending it to them in the future.
“For now, we only give loans to students of public institutions because the law doesn’t allow us to give loans to private institutions.
“However, I’m very aware that His Excellency President Bola Ahmed Tinubu has indicated that he would like, at some point in the future, to capture all,” he said.
The NELFUND MD said students of 150 public institutions comprising federal and state-owned schools have benefitted from the loans.
What you should know
Earlier this month, NELFUND disclosed in a statement that it had disbursed a total of N20 billion for institutional fees, benefiting no fewer than 192,906 students across various tertiary institutions in the country as of February 3, 2025.
- NELFUND added that approximately 169,114 students had benefitted from the Fund’s monthly stipend disbursement, amounting to N12.8 billion with each student receiving N20,000.
- The bill establishing NELFUND was signed into law on April 3, 2024, marking a historic step towards ensuring sustainable higher education and functional skill development for Nigerian students.
- The primary objective is to provide financial support to qualified Nigerians for tuition, fees, and living expenses at approved tertiary and vocational institutions within Nigeria.