Share!
The Nigerian Education Loan Fund (NELFUND) is facing a growing financial burden, with its monthly student upkeep bill reaching about N16 billion while loan recoveries from beneficiaries have yet to begin.
The development was disclosed by NELFUND Managing Director, Akintunde Sawyerr, who explained that the student loan scheme is more than two years old but has not started recovering funds from beneficiaries.
Sawyerr said the situation presents a major challenge to the sustainability of the programme as the number of students benefiting from the scheme continues to increase.
According to him, NELFUND currently spends about N16 billion every month on upkeep payments alone, in addition to funding institutional fees and other obligations under the student loan programme.
The NELFUND boss said the Federal Government is therefore exploring alternative sources of funding to sustain the scheme, including recovered proceeds of crime and unclaimed dividends.
The government has also indicated plans to channel eligible funds recovered by the Economic and Financial Crimes Commission (EFCC), alongside unclaimed dividends, into NELFUND to strengthen its long-term financing capacity.
Sawyerr maintained that the student loan scheme remains critical to expanding access to tertiary education, particularly for students who may otherwise struggle to meet the cost of attending higher institutions.
The latest disclosure has, however, raised fresh questions about the long-term sustainability of NELFUND as its financial obligations continue to grow while repayments from beneficiaries are yet to commence.
NELFUND’s expanding financial commitments underscore the need for a sustainable funding model capable of supporting students while ensuring that the loan scheme can eventually replenish its resources through repayments.
No related posts.
