NELFUND Releases ₦82.4 Billion in Student Loans

NELFUND Disburses ₦82.4 Billion

This significant interest in NELFUND reflects the program's impact on making education more accessible in Nigeria...

Nigeria's education sector gets boost as NELFUND disburses N84.2bn in student loans. Hon. Gboyega Isiaka outlines key provisions of Student Loans Access to Higher Education Act 2024. Meanwhile, Chris Abu urges collective action to tackle shortage of qualified teachers, dilapidated infrastructure & poor funding.

The Nigerian Education Loan Fund (NELFUND) has made significant strides in supporting education in Nigeria. As of September 2024, the organization has disbursed a total of N84.2 billion to applicants, announced Chairman Gboyega Isiaka of the House of Representatives Committee on Polytechnic and Higher Technical Education.

Breakdown of Disbursement:

Institutional Facilities: N27.5 billion was allocated to enhance the infrastructure of various institutions 

Upkeep of Facilities: N56.7 billion was provided to ensure the maintenance and upkeep of these facilities.

President Bola Tinubu established the Nigerian Education Loan Fund (NELFUND) by signing the Student Loans (Access to Higher Education) Act, 2024, on April 3, 2024, to provide financial support to eligible Nigerian students pursuing higher education in approved institutions within the country.

Honorable Gboyega Isiaka, representing Yewa North/Imeko-Afon Federal Constituency in Ogun State, shared exciting updates on the Nigerian Education Loan Fund (NELFUND) during the 36th annual conference of the Federal Government College, Maiduguri Old Students Association, held in Abeokuta on October 5, 2024.

NELFUND Registration and Loan Applications:

Total Registrations: 351,317 students have registered on the NELFUND portal.

Loan Applications: 258,943 students applied for institutional loans, upkeep loans, or both.

This significant interest in NELFUND reflects the program's impact on making education more accessible in Nigeria. As a government-backed initiative, NELFUND aims to break financial barriers in higher education. Recently, NELFUND approved the disbursement of student loans to additional institutions, expanding its reach to 59 institutions.

Gboyega Isiaka, Chairman of the House of Representatives Committee on Polytechnic and Higher Technical Education, shed light on the key provisions of the Students Loan Access to Higher Education Act, 2024, during his presentation titled “Empowering the Next Generation: Education as a Catalyst for National Development (Student Loans Access to Higher Education Act 2024 in Perspective).”

He highlighted the significant changes brought about by the Act, including the removal of disqualification criteria based on an applicant's parents' loan history and the elimination of the guarantor requirement. This means that students can now access loans without being burdened by their parents' financial past or needing a guarantor.

Isiaka's presentation aimed to showcase how the Act empowers the next generation by making education more accessible and affordable.

The Nigerian Education Loan Fund (NELFUND) Act is a game-changer for students struggling to access higher education due to financial constraints. Its primary goal is to bridge the financial gap by providing loans to deserving students without the usual bureaucratic hurdles. This means that students can now focus on their studies without worrying about the financial burden.

One of the significant changes introduced by the Act is the removal of the disqualification criteria based on an applicant's parents' loan history. This is a huge relief for students who may have been impacted by their parents' financial situation in the past. Additionally, the guarantor requirement has been scrapped, making it easier for students to access loans. Now, students can receive loans once their identity and application details have been verified.

Benefits of the NELFUND Act:

Simplified Application Process: No more bureaucratic hurdles to jump through 

No Disqualification Based on Parents' Loan History: Students are judged on their own merit, not their parents' financial past 

No Guarantor Required: Students can access loans without needing a guarantor 

Zero-Interest Loans: Students don't have to worry about accumulating interest on their loans 

Overall, the NELFUND Act is a significant step forward in making higher education more accessible to Nigerian students. With its simplified application process and removal of unnecessary barriers, more students can now pursue their academic goals without financial stress.

The updated Student Loans Access to Higher Education Act, 2024, has brought significant changes to the education landscape in Nigeria. Unlike the previous version of the bill passed in 2022, the new Act eliminates the family income threshold, making all Nigerian students eligible to apply for loans, regardless of their family's financial background. This move aims to bridge the financial gap that prevents many students from pursuing tertiary education.

Provisions of the Act:

No Family Income Threshold: All Nigerian students can now apply for loans, taking personal responsibility for repayment under the guidelines set by the Fund.

Repayment Terms: Loan beneficiaries must begin repayment two years after completing their National Youth Service Corps (NYSC) program.

Repayment Extension: Unemployed beneficiaries can request a repayment extension by submitting an affidavit confirming their lack of income.

Loan Forgiveness: In cases where the borrower passes away or is incapacitated by an “act of God,” the loan will be forgiven.

To apply for the loan, students must meet the eligibility criteria, which includes being a Nigerian citizen and enrolled in a recognized public tertiary institution. Required documents include JAMB admission letter, National Identification Number (NIN), Bank Verification Number (BVN), and student matriculation or registration number.

The Student Loans Access to Higher Education Act, 2024, comes with strict penalties for those attempting to defraud the system. Individuals found guilty of providing false information to the Fund regarding loan repayment will face felony charges, with possible sentencing of up to three years in prison.

According to Honorable Gboyega Isiaka, the revival of student loans, initially introduced in 1972 but later suspended, marks a significant milestone. He expressed optimism that the Nigerian Education Loan Fund (NELFUND) will greatly improve access to affordable, quality education for Nigerians, driving national development. With NELFUND, students can now pursue higher education without financial burdens, fostering personal and national growth.

By providing financial assistance to students, NELFUND aims to increase access to higher education, ultimately contributing to the country's development.

“As of the end of September 2024, the Nigerian Education Loan Fund has made tremendous progress under President Bola Ahmed Tinubu's administration, paving the way for a brighter future for our nation's students,” he said.

“The numbers speak for themselves: 351,317 students have registered on the NELFUND portal, out of which 258,943 have applied for either institutional or upkeep loans, or both.

“A total of N84.2bn has been disbursed to the applicants, comprising N27.5 billion for institutional facilities and N56.7 billion for upkeep facilities.

“This is more than just a statistic-it represents hope, opportunity, and a commitment to empowering our students to succeed.”

Chris Abu, the National President of the Federal Government College, Maiduguri Old Students Association, recently expressed deep concern over Nigeria's security challenges, highlighting their threat to the very foundation of Federal Government Colleges, also known as Unity Schools. These institutions were established to promote national integration and unity among Nigeria's diverse population. Abu emphasized that the current security issues are undermining the core purpose of Unity Schools, which is to bring together students from different regions and backgrounds to foster a sense of national identity and cooperation.

The Unity Schools were created to address the country's historical divisions, with the first three Federal Government Colleges established in 1966 in Okposi, Sokoto, and Warri. Following the civil war, more Unity Schools were established in all 12 states, including Abu's alma mater, which was founded in 1973. Today, there are 104 Federal Government Colleges nationwide, with the goal of using education to promote unity, patriotism, and inter-relationship among students from diverse backgrounds.

Key Objectives of Unity Schools:

Promote National Integration: Foster unity among Nigeria's diverse population

Encourage Patriotism: Instill a sense of national identity and pride

Develop Inter-Relationship Skills: Encourage collaboration and understanding among students from different regions and backgrounds

Abu's concerns about security challenges are timely, considering the country's current economic and political climate. With inflation on the rise, poverty and hardship have returned to many households, and insecurity has become a major concern. The Unity Schools' role in promoting national integration and unity is more crucial now than ever, and addressing security challenges is essential to ensuring the continued success of these institutions.

Abu's passionate plea highlights the dire state of Nigeria's education system, plagued by a severe shortage of qualified teachers and crumbling infrastructure. The alarming reality is that these poor conditions have significantly hindered the delivery of quality education, jeopardizing the future of Nigeria's youth. With only 61 percent of primary school-aged children enrolled, Nigeria has the world's highest number of out-of-school children.

Key Challenges Facing Nigeria's Education System:

Shortage of Qualified Personnel: Insufficient trained teachers to provide quality education

Dilapidated Infrastructure: Crumbling school buildings and inadequate facilities

Poor Funding: Inadequate allocation of resources to address educational needs

To address these challenges, Abu emphasizes the need for urgent collective action, calling on federal, state, and local governments to join forces with the private sector. A unified approach is crucial to improve security and revitalize educational facilities across the country. This collaborative effort can:

Enhance Teacher Training: Provide opportunities for professional development

Infrastructure Development: Invest in modern, safe, and conducive learning environments

Increased Funding: Allocate sufficient resources to support educational initiatives

By working together, Nigeria can overcome the current educational challenges and provide its youth with the quality education they deserve. This, in turn, will foster a brighter future for the nation, equipped with skilled and educated individuals capable of driving progress and development.

“I feel a bit disheartened that the status quo has changed in our Federal Government Colleges. In the past, while we were at the Federal Government College, Maiduguri, Borno State, the population of indigenous students among the student body was not more than 30 per cent while the remaining 70 per cent were students from other states and ethnic backgrounds,” he said.

“But this has changed due to the security challenges. Currently, about 60 to 80 per cent of the student population are indigenous students, which contradicts the purpose of these Federal Government Colleges, also called Unity Schools. The essence of Unity Schools is to bring together students of diverse backgrounds and ethnicities to promote national unity and integration.”