Student Loan Demand Overwhelming, Billions Disbursed – NELFUND

Demand for the Federal Government-backed student loan scheme has been overwhelming, reflecting the growing financial pressure facing many Nigerian students seeking to enter and remain in tertiary institutions, the Nigerian Education Loan Fund (NELFUND) has said.

The Managing Director and Chief Executive Officer of NELFUND, Mr Akintunde Sawyerr, said the scheme had become a crucial source of support for students who might otherwise struggle to finance their education.

Speaking during an interview on Channels Television’s Sunday Politics, Sawyerr said the high demand underscored the financial difficulties confronting many families and students amid rising education and living costs.

“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.”

The student loan scheme was introduced as part of the Federal Government’s efforts to expand access to tertiary education and reduce financial barriers that prevent qualified Nigerians from enrolling in or completing higher education.

Sawyerr said NELFUND was now studying the rising number of applications and analysing its disbursement figures to gain a clearer understanding of the programme’s financial demands as more students seek assistance.

According to him, the fund has so far disbursed ₦162 billion in upkeep allowances to students, as the scheme continues to extend its reach across public tertiary institutions.

The NELFUND boss said the programme was also beginning to reshape how students make decisions about higher education, particularly as access to financial support gives them greater flexibility in choosing institutions.

He noted that this could encourage increased competition among tertiary institutions, as students are less constrained by their immediate financial circumstances when deciding where to study.

The growing demand, however, is likely to place greater responsibility on the fund to ensure that applications are efficiently processed and that the scheme remains adequately funded as more students turn to it for support.

Sawyerr’s remarks highlight the increasing importance of the student loan programme at a time when the cost of pursuing higher education has become a major concern for many Nigerian families.