*Akintunde Sawyerr, Managing Director and CEO, Nigerian Education Loan Fund, affirms the student loan scheme has provided a lifeline for students, who otherwise would struggle to finance their education, describing the increasing demand for student loans as ‘overwhelming’ in the vital sector of the economy
Isola Moses | ConsumerConnect
Despite recent misrepresentations and attendant campaign of calumny against the operations of the Fund, Mr. Akintunde Sawyerr, Managing Director and Chief Executive Officer (CEO) of the Nigerian Education Loan Fund (NELFUND), has said sustained demand for student loans has been “overwhelming”.
Sawyerr stated this during a recent interview on a Channels TV”s programme, saying that the student loan scheme has provided a lifeline for students who would otherwise struggle to finance their education.
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“The demand has been overwhelming, because clearly a lot of people have struggled to get into these institutions,” he said. “They are hanging on by the skin of their teeth to stay in the institution, and this programme came as a rescue for them.”
According to Sawyerr, NELFUND was now analysing the growing demand and the figures around its disbursements to better understand the financial requirements of the scheme.
The NELFUND boss noted that the scheme has so far disbursed ₦162 billion in upkeep allowances to students, as the government-backed scheme continues to expand its reach across public tertiary institutions.
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 also dismissed claims that the fund favours children of members of the All
He said the system was designed “without bias”, political affiliation or other considerations, stressing that beneficiaries were determined according to the established criteria.
Speaking on how the fund identifies students who are unable to pay their fees, Sawyerr said NELFUND relies on information and established processes to determine eligibility.
He also cited research indicating that the scheme had contributed to a reduction in student dropout rates, saying it has “reduced by 20 per cent.”
On repayment, he maintained that paying back the loans should not constitute an undue burden for beneficiaries, noting that the system was structured around beneficiaries’ ability to repay.
He added that beneficiaries would become increasingly traceable as the repayment system develops.
The NELFUND Chief Executive also spoke about President Bola Ahmed Tinubu’s announcement about the use of funds recovered by the Economic and Financial Crimes Commission (EFCC) to support the student loan scheme.
Sawyerr said the funds had not yet been received by NELFUND.
ConsumerConnect reports President Tinubu, in April 2024, signed the student loan scheme, established under the Student Loans Act into law.
The Fund provides interest-free financial support to eligible Nigerian students in public tertiary institutions.
The scheme also covers approved institutional charges and upkeep allowances, with repayment scheduled to begin two years after completion of the beneficiary’s National Youth Service Corps (NYSC) programme in Nigeria.