With its disbursements of institutional fees and stipends to students, the Nigerian Education Loan Fund (NELFUND) has underscored the imperative of the President Bola Tinubu’s flagship project in the education sector, which is to provide unfettered access to quality education across the nation, DAMOLA KOLA-DARE reports.
Despite doubts and pessimism from many quarters, including the Academic Staff Union of Universities (ASUU), which said the student loan initiative will make students forever indebted, institutions and students were not deterred. Thus, six federal institutions have got up to the tune of N2.5 billion inclusive of upkeep stipends from the Nigerian Education Loan Fund (NELFUND).
A pledge fulfilled
Six federal institutions have received full payment of their institutional fees, covering over 20,000 students, while the remaining six will receive their payments soon. It said it had disbursed over N2.5 billion inclusive of upkeep stipends for students.
The institutions include University of Ibadan, Bayero University Kano, University of Ilorin, University of Benin, University of Maiduguri and Federal University Dutsinma, Katsina State.
The NELFUND provided a breakdown of the amount among the six institutions with Bayero University, Kano getting N853,775,000; University of Maiduguri N589,001,500; Federal University Dutsinma, Katsina State received N304,961,800; University of Ibadan (N201,114,650); University of Ilorin (N52,897,890) and University of Benin (N24,412,500).
Besides the institutional fees, the agency said it made payment of upkeep stipends to students with N442 million allocated for the month of July. It stated that the upkeep payments will benefit all 22,120 students across the institutions. NELFUND explained that disbursements are made based on each institution’s academic calendar (beginning of the session).
NELFUND paid the institutional fees (school fees) directly to the successful applicants’ institutions, while a monthly upkeep allowance of NGN20,000 is paid directly to students, who included it in their applications. Managing Director of NELFUND, Akintunde Sawyerr, said more disbursements will follow as applications by students from 100 tertiary institutions are being reviewed.
He said: “I am delighted to share that following President Bola Tinubu’s directive, NELFUND has been able to disburse students’ institutional fees amounting to NGN1,172,388,340 for 20,000 students at institutions across the country.
“These institutions were carefully selected based on their academic calendar. We have approved 260,000 loans, which include both institutional fees and upkeep. It is not everyone who applied for an institutional loan, who requested an upkeep loan. We are collaborating with several agencies and institutions to ensure that this scheme works.”
The agency demonstrated its commitment to the project when at its inaugural board meeting in June under the leadership of Mr. Jim Ovia, it approved immediate disbursement of loans to successful applicants, marking a milestone in its mission to support student’s education.
This underscored President Tinubu’s dedication to providing timely and essential financial assistance to students in need, enabling them to pursue their educational goals without undue financial strain. NELFUND also underlined its readiness to empower students through financial support, while taking a bold step in fulfilling its mission to support education and empower the next generation of leaders.
Upsurge in loan applications
NELFUND noted recorded an upsurge in daily student loan applications following the disbursement of July stipends to applicants across the six federal tertiary institutions. Oseyemi Oluwatuyi, its spokesperson, said early this month that NELFUND saw a deluge of applications from students.
The agency said it recorded registrations from 9,687 students within one day, with 7,975 students completing their loan applications. It noted that the figure was the highest it has recorded within a 24-hour timeline since the loan application portal opened in May.
NELFUND described the thousands of applications as an “overwhelming surge” that showed the financial woes of students and challenges of getting funds for quality education.
“Lack of funds is a major issue that many aspiring higher education students are facing. Since the opening of the student loan application portal, NELFUND has recorded a steady and consistent influx of applications, highlighting the pressing need for financial assistance among Nigerian students,” it said.
The fund disclosed that it has so far disbursed over N2.5 billion for over 20,000 applicants, while over 110,000 had applied for the scheme as of mid-last month with more than 160,000 students having registered on its portal.
Students received loan, delighted
A 400-Level Quantity Survey student at Bayero University Kano (BUK), Musa Hussain, applauded the agency for the loan. He told The Nation that the upkeep stipend of N20,000 he received early this month enabled him to take care of some pressing needs.
He said: “Seriously, the upkeep money has helped a lot to be honest. I received my first upkeep this month. It is N20,000. This will last for a period of 12 months.
“I used it to buy things I needed, especially there is an ongoing programme now in our school. The money helped me to source for materials and carry out my project. The N20,000 is for a period of 12 month, which is N240,000. And school fee is N110,000, making a total amount of N350,000.
“First of all, it’s easy to apply. I didn’t experience any hitch on the application and its interest free from the Federal Government. It’s a good start from them to students. It is the normal process of application. I got the link from someone. Then you tap the link. It will direct you to the site in which you need to fill some information, your name, your registration information, your contact address and other things needed on the site.
“After you apply, the application will go through a verification process. They will verify your information first. It took me one month three days before I was verified. I know it’s because of the number of students that apply. They will make sure your data are all legitimate. After that, they will approve the loan. You will then receive your first upkeep. And your registration fee will go directly to your school, not your personal account.”
Another BUK student, who craved anonymity, expressed delight about the initiative. He hailed the Federal Government for its commitment to ensuring every youth gets unhindered access to education. He, however, urged government to increase the upkeep stipend because of the country’s economic situation.
Others expecting, approval and disbursement
Many students at other institutions are optimistic and expectant of their applications getting approved before a new session commences. NELFUND had said disbursement will depend on the commencement of a new academic session.
A 400-Level Sociology and Anthropology student at Obafemi Awolowo University (OAU), Ile-Ife, Osun State, Erinoso Abolaji Opeoluwa, noted that she has not received the loan after her application. She expects disbursement to be when school resumes for another session.
“I am yet to receive the loan. Probably, we will get it when school resumes for a new session,” she said.
Ibrahim Sofiat, a 200-Level Mass Communication student at Lagos State University of Science and Technology (LASUSTECH), said: “I applied through the NELFUND link and the process was fast enough.
“Though I had a little issue uploading the required documents, I have not received the payments despite uploading the required documents.”
NELFUND on-boards state-owned tertiary institutionsChecks by The Nation revealed that as of now, no state institution has received the loan. The agency’s recent onboarding of 22 state-owned institutions brings the total number of approved state institutions to 108.
“Prior to this, 86 state-owned institutions were cleared, bringing a total of 108 institutions whose students are now able to apply,” it said.
NELFUND had announced on July 7 that 36 State-owned tertiary institutions had been cleared, noting that their students can begin their loan applications. They included Lagos State University, Tai Solarin University of Education, Ogun State, Borno State University, Lagos State University of Science and Technology, Lagos State University of Education, Ekiti State University, among others.
Thereafter, on July 10, it announced the onboarding of an additional 12 state government-owned tertiary institutions to the application portal.
“This expansion comes following the successful submission and verification of data completeness and accuracy required from the institutions,” it said.
Fed Govt committed to education
The President on April 3, signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, into law.
The assent was sequel to the separate considerations by both the Senate and the House of Representatives of the report of the Committee on Tertiary Institutions and the Tertiary Education Trust Fund.
The Act empowers the NELFUND to provide loans to qualified Nigerian students for tuition, fees, charges and upkeep during their studies in approved public tertiary institutions and vocational and skills acquisition establishments in the country.
The revised Student Loan Act 2024 was created to remove financial barriers and make education more accessible to all students, regardless of their economic background.
The primary sources of funding for NELFUND include a percentage of taxes, levies, and duties collected by the Federal Inland Revenue Service (FIRS), Nigerian Immigration Service, and Nigerian Customs Service, amounting to one percent of their total revenues.
The fund will also receive contributions from the profits generated by the government’s natural resource exploitation, education bonds, endowment fund schemes and donations from individuals and organisations.
The loans cover tuition, fees, and maintenance costs, while repayment process starts two years after the beneficiary completes the NYSC programme and also dependent on if he/she secures paid employment.
