Abuja, Nigeria – The Managing Director/CEO of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, has confirmed that beneficiaries of the student loan scheme will begin repayment two years after completing their National Youth Service Corps (NYSC) program.
Speaking on a TVC News program on Saturday, Sawyerr explained that repayment would only apply to those who have secured employment. He added that the responsibility of loan repayment lies with employers, who are mandated to deduct 10% of the employee’s salary and remit it to NELFUND monthly.
Repayment Process and Employer Responsibility
Providing further details on the repayment process, Sawyerr emphasized that employers must verify the employment status of loan beneficiaries.
“Two years after NYSC, the loans must be repaid, but the obligation is on the employer,” he said.
He outlined that employers are required to check the names and National Identification Number (NIN) of potential employees in the NELFUND database before hiring them. Once confirmed, the employer must notify NELFUND and commence the monthly deduction of 10% from the employee’s salary.
“At no point is the individual directly responsible for making payments,” Sawyerr added.
For self-employed beneficiaries, repayment will be handled independently. However, unemployed graduates are not required to make any payments until they secure a job.
Consideration for Private Institution Students
Currently, NELFUND loans are only available to students in public institutions due to legal restrictions. However, Sawyerr revealed that President Bola Ahmed Tinubu is considering extending the scheme to private university students in the future.
“For now, we can only provide loans to students in public institutions because the law does not allow us to extend them to private schools. However, President Tinubu has expressed interest in expanding the program at some point,” he stated.
Loan Disbursement and Beneficiaries
As of February 3, 2025, NELFUND had disbursed a total of N20 billion for institutional fees, benefiting 192,906 students across 150 federal and state-owned institutions. Additionally, 169,114 students received N12.8 billion in monthly stipends, with each student getting N20,000.
The NELFUND initiative, established under a law signed on April 3, 2024, aims to provide financial support for tuition, fees, and living expenses, ensuring sustainable higher education and vocational skill development for Nigerian students.
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