EXCLUSIVE: Kudos, Knocks as Student Loan Scheme Rollout Faces Scrutiny Amidst Operational Challenges

•••170,000 Open Accounts, 65% of Applicants Complete Process, Totalling 110,000 Students – Report

•••NELFUND Boss Addresses Skepticism as NANS Hails ‘New Dawn’

•••Beneficiaries, Stakeholders React to Initiative

By Sodiq Adelakun

The federal government’s student loan scheme which is targeted at alleviating financial burdens on tertiary education students, has been met with both praise and criticism as its rollout faces scrutiny amidst operational challenges.

While some hail the initiative as a game-changer for Nigerian students, others raise concerns about its sustainability, accessibility, and potential impact on the education sector.

As the scheme’s implementation unfolds, this report examines the experiences of beneficiaries, stakeholders’ concerns, and the operational hurdles that threaten to undermine the program’s success.

Following the recent announcement by the Nigerian Education Loan Fund (NELFUND) that 36 state-owned tertiary institutions have been cleared to benefit from the student loan scheme, beneficiaries and stakeholders have begun to react to the initiative.

While some have praised the scheme as a game-changer for Nigerian students, others have raised concerns about its potential impact on the education sector and the nation’s economy.

A new chapter is unfolding for Nigerian students as the Nigerian Education Loan Fund (NELFUND) announces that successful applicants will start receiving credit alerts from next week.

Akintunde Sawyerr, NELFUND Managing Director, shared the excitement on Channels Television’s Politics Today, stating, “The people who are going to first receive alerts as early as next week are the people who are about to start a new session in the institution they are in.”

This news comes on the heels of President Bola Tinubu’s launch of NELFUND at the State House in Abuja, signaling a commitment to education and socio-economic growth.

Over 170,000 applicants from universities, polytechnics, and colleges of education have opened accounts with NELFUND, with 110,000 completing the application process.

Sawyerr emphasised that further verification will ensure only eligible students receive the loans.

Sawyerr highlighted the requirements, including JAMB numbers, matric numbers, BVN, and NIN.

With N35 billion currently available for disbursement and additional funding on the way, NELFUND is poised to make a meaningful impact.

As Sawyerr noted, “It’s one thing to get approval for the loan, it’s another thing to begin to receive value. This loan is for those who are going to be starting institutions afresh or those who are already there.” This initiative promises to empower students, foster better leadership, and improve Nigeria’s socio-economic landscape.

Also, National Association of Nigerian Students (NANS) President Lucky Imonife hailed the initiative as a “new dawn” in the education sector, ensuring accessibility for all students.

“We’re trying to ensure that people know that this is not a trick, it’s not a game. Mr. President has backed this with cash, and we’re going to disburse that cash,” Sawyer said.

Imonife added, “Today we are excited, Nigerian students are happy that the dream has come true. It was once a dream, it has become an act, and today is the presidential launch and disbursement.”

The scheme’s impact will be significant, changing many lives and affecting the country’s future. Sawyer praised President Bola Ahmed Tinubu for his vision and courage in establishing NELFUND.

Imonife emphasised that the loan scheme is a tool for fighting poverty and ensuring access to higher education for all Nigerian students.

Recall The Nigerian Education Loan Fund, said a total of 36 state-owned tertiary institutions had been cleared to beneift from the student loan scheme.

It said the students of the 36 institutions could now apply for student loans.

“The management of NELFUND is pleased to announce that students enrolled in the following 36 state-owned tertiary institutions can now apply for student loans effective today, 7th July 2024

“The management of these institutions have successfully submitted their student data to the NELFUND Student Verification System. We urge all other state-owned tertiary institutions to submit their complete student data to the NELFUND Student Verification System timely to enable their students benefit from the scheme.”

The Federal Government had voted N50bn in the 2024 budget for the implementation of its student loan scheme.

This was contained in the details of the 2024 budget appropriation.

Meanwhile, details of how the loan scheme, unveiled by President Bola Tinubu in June, would be implemented remains sketchy.

The student loan program in Nigeria has been a game-changer for many students, providing them with the financial support they need to pursue their academic dreams.

Beneficiaries share their experiences with Nigerian Education Loan Fund

For Ayodele Ajayi, a 300-Level student at Obafemi Awolowo University, the loan has been a “lifesaver” that has enabled her to focus on her studies without financial worries.

He said, “I’m so grateful for the Nigerian Education Loan Fund. The loan has been a lifesaver for me. I was struggling to pay my school fees and was worried that I might have to drop out of university. But with the loan, I’ve been able to focus on my studies without financial worries.

“I remember when I first heard about the loan scheme, I was skeptical at first. I didn’t know if it was legitimate or if I would qualify. But after doing some research and talking to friends who had already applied, I decided to give it a try.

“The application process was relatively easy and straightforward. I just had to fill out a form online and upload some documents. And then I waited for a few weeks to hear back from NELFUND.

“When I received the news that my application had been approved, I was overjoyed. I couldn’t believe that I had been given this opportunity to pursue my education without financial stress.

“The loan has really taken a huge weight off my shoulders. I’m able to focus on my studies and participate in extracurricular activities without worrying about how I’m going to pay my school fees. It’s been a game-changer for me.”

Also, Fatima Abdulkareem, a 400-Level student at Kwara State University, was initially skeptical about the programme but has since become a beneficiary. “I’m grateful for the opportunity,” she said. “The loan has helped me stay financially afloat.”

“I was initially skeptical about the Nigerian Education Loan Fund, but after doing some research and talking to friends who had already applied, I decided to give it a try.

“I’m so glad I did. The loan has really helped me to focus on my studies and participate in extracurricular activities without financial stress. 

Tolulope Oluwaseun, a 200-Level student at the University of Ibadan, has also benefited from the program.

“The loan has allowed me to afford necessary textbooks and attend seminars without breaking the bank,” she said.

Chukwuma Okoro, a 500-Level student at Federal University Oye-Ekiti, has seen the loan’s impact on his research project. “The loan has taken a huge weight off my shoulders,” he said. “I can now focus on my research without worrying about funding.”

Nneoma Okoye, a 300-Level student at Aquinas College, is also grateful for the loan. “It’s helped me pay my tuition fees and still have enough left over for other expenses,” she said.

In a related development, stakeholders, experts other have reacted. While some have praised the initiative as a solution to tertiary institution funding, others have raised concerns about its potential impact on students and the education system as a whole.

According to Prof. Emmanuel Osodeke, National President of ASUU, “The student loan is discriminatory and will end up encumbering the children of the poor with loans and debt after graduating.”

He also noted that the loan scheme may not be sustainable due to the high unemployment rate and poor economic policies in the country.

On the other hand, Prof. Femi Mimiko, former Vice-Chancellor of Adekunle Ajasin Akungba University, believes that the scheme has the potential to enhance the education sector if properly delivered.

“The contentious issue of an effective repayment system that takes cognisance of the realities of our economy can be worked out in a future amendment,” he said.

Other stakeholders, such as Dr. Muda Yusuf, Director/Chief Executive Officer, Centre for Promotion of Private Enterprise, have argued that the loan scheme is unnecessary and that the government should focus on funding the education sector instead.

“There are other bigger issues to be addressed in the education sector, like the out-of-school children,” he said.

NELFUND listed the universities as follows, Adamawa State University, Mubi; Ramat Polytechnic, Maiduguri; Borno State University; Muhammed Lawan College of Agriculture, Borno State; Edo State University, Uzairue; Ekiti State University, Ado-Ekiti

Others include Gombe State University; Kingsley Ozumba Mbadiwe University, Imo State; Imo State University of Agriculture and Environmental Sciences Umuagwo; Nuhu Bamalli Polytechnic, Zaria; Yusuf Maitama Sule University, Kano; Umaru Musa Yar’Adua University, Katsina; Katsina State Institute of Technology and Management; Kebbi State University of Science and Technology, Aliero; Confluence University of Science and Technology, Kogi State; Lagos State University of Education; Lagos State University.

Also on the list are Nasarawa State University, Keffi; Tai Solarin University of Education, Ogun State; University of Medical Sciences, Ondo; Osun State University; University of Ilesa, Osun State; GTC, Ara, Osun State; GTC, Gbongan Osun State; GTC, Ijebu-Jess, Osun State; GTC, Ile-Ife; GTC, Inisa; GTC Iwo; GTC Osun; GTC Otan Ayegbaju; Osun State College of Education, Ila-Orangun; Government Technical College, Ile-Ife; Osun State College of Technology; Taraba State University, Jalingo; Umar Suleiman College of Education, Gashua, Yobe State and Zamfara State University, Talata Mafara.

The management of NELFUND had on June 25, 2024, shifted student loan applications for students in state-owned tertiary institutions to July 10 due to low data submissions.

The process was supposed to be opened to the students from June 25, 2024.
In a statement by the Head, Media and Public Relations, Nigerian Education Loan Fund, Nasir Ayitogo, the organisation had said the decision to shift the date was necessitated by the failure of several state-owned institutions to upload the required student data and fee information to the NELFUND Student Verification System.
No fewer than 1.2 million students are expected to benefit from the cardinal programme of the President Bola Tinubu administration.

Recall The President approved N35bn for the take-off of the scheme after signing the law backing the scheme on April 3.

The Nigerian government has said 250,000 to 300,000 students in tertiary institutions are expected to benefit from its Student Loan Scheme in 2024.

The Managing Director of the Nigerian Education Loan Fund, NELFUND, Akintunde Sawyerr, disclosed this in an interview with Channels Television on Monday.

Sawyerr said the N60 billion fund loan scheme can counter two million Nigerian students in various higher institutions in the country.

He explained that the facility is open to only those already in higher institutions.

“Currently today in tertiary institutions across the board including the private sector, there are about 2 million people. This loan is open to those who are already in the institutions. This is not about those coming in only. This is about if you apply for a loan today, for the next session, you will get it.

“Arguably, we can give everybody a loan. The funds are available to make for us to cover those sorts of numbers over time.

“This year we expect to have 250 to 300,000 applicants from the academic side. We are going to have less than that for the vocational side because we are just kicking that process off,” Sawyer said

Recall that NELFUND which opened its portal for application on May 24, 2024, recently approved the disbursement of N35 billion to 70,000 successful applicants.