NELFUND has rejected allegations that the Federal Government’s student loan scheme is being used to favour supporters or children of members of the All Progressives Congress (APC).
The Managing Director and Chief Executive Officer of the Nigerian Education Loan Fund, Akintunde Sawyerr, dismissed the claim as “completely ridiculous.”
Moreover, he said the structure of the application system does not allow political affiliation to determine who receives the loans.
Sawyerr spoke during an interview on Channels Television’s Sunday Politics programme.Campaigns & Elections
He explained that the loan scheme is operated through an electronic application process.
Applicants are required to provide personal and academic information, including their names and matriculation numbers.
According to him, the system is designed to establish whether an applicant meets the requirements for the programme.
It does not collect information that would enable NELFUND to determine whether a student belongs to the APC or supports another political party.
“I have not heard this allegation, but I can tell you that it’s a completely ridiculous idea that the administration of Bola Tinubu is focused on trying to fund people who support the party. We are talking about students; many of them are yet to vote, some of them are going to be voting for the first time, [and] many of them are not party members.
“How, in any event, do we determine who is a party member and who isn’t? Even if you are running a manual process, how do you do that? You can’t. It’s unlikely to yield you any result.
“It is a process you have to apply for this loan electronically. If you don’t have a name, you can’t apply for this loan. You provide your matriculation number; you have to be in a public institution,” he said.
The NELFUND boss said the allegation also failed to take into account the nature of the beneficiaries targeted by the programme.
He noted that many students accessing the loans are young people who have not yet participated in an election. Some are also not members of any political party.
Sawyerr therefore maintained that using political affiliation as a basis for deciding beneficiaries would be impractical under the existing system.
He said NELFUND’s focus is on Nigerian students who meet the conditions for the loan and are enrolled in eligible public tertiary institutions.
Sawyerr described the demand for the scheme as “overwhelming”, saying many students and their families were struggling to meet the financial demands of tertiary education.
“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.”
He disclosed that NELFUND had so far disbursed about N162 billion in upkeep allowances to students.
The fund is also examining application and disbursement figures as demand increases, with the agency seeking to understand the financial requirements needed to sustain the programme.
The student loan initiative was introduced by the Federal Government as part of efforts to reduce financial barriers to higher education.
President Bola Tinubu signed the Student Loans Act into law in April 2024, paving the way for the current NELFUND structure. The scheme provides interest-free financial support to eligible Nigerian students in public tertiary institutions.
It covers approved institutional charges and upkeep support for qualified beneficiaries.
The programme was designed to give students access to funding without requiring them to depend entirely on their parents or guardians to remain in school.
NELFUND has repeatedly stressed the importance of an electronic process in managing applications and disbursements.
The system allows applicants to submit their information for verification before their applications are processed.
Sawyerr further insisted that the system does not discriminate based on religion, ethnicity or gender.
“We have a system that is focused on people who are Nigerians and meet the standard. The system doesn’t recognise your gender. There is no bias in the system at the front end or the back end.
“This is a system that doesn’t care whether you are of one tribe or the other. This system does not have a view or an opinion on whether you are a Christian, a Muslim, or an African traditional religionist; it doesn’t want to know.”
The NELFUND chief also spoke about the impact of the scheme on student retention.
He said available figures indicated that the programme had contributed to a reduction in the number of students dropping out of tertiary institutions, with the reduction put at about 20 per cent.
Sawyerr also addressed concerns surrounding repayment of the loans.
He maintained that beneficiaries would not be subjected to an unreasonable repayment burden, noting that repayment would be tied to their ability to pay after completing their studies.
Under the current structure, repayment is expected to commence two years after beneficiaries complete the National Youth Service Corps programme.
The NELFUND boss also disclosed that funds President Tinubu announced would be recovered by the Economic and Financial Crimes Commission (EFCC) and channelled into the student loan scheme had not yet been received by the fund.
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