NELFUND Outlines Plan To Recover Student Loans Two Years After NYSC.
The Nigerian Education Loan Fund (NELFUND) has detailed a robust strategy to recover interest-free student loans, ensuring sustainable financing for higher education, as announced by its Managing Director, Akintunde Sawyerr, on 13 August 2025. The repayment process, designed to be flexible and fair, will commence two years after beneficiaries complete their National Youth Service Corps (NYSC) programme, supporting President Bola Tinubu’s vision of accessible education for all Nigerian students.
Speaking at a press briefing in Abuja, Sawyerr explained that NELFUND, established under the Student Loans (Access to Higher Education) Act 2024, has already disbursed over N110 billion to more than 328,000 students in public tertiary institutions across Nigeria. The loans cover tuition fees in full and provide upkeep allowances, with 60% of funds allocated to institutional fees and 40% to student maintenance. “Our repayment terms are among the most generous globally,” Sawyerr stated, noting that loans are interest-free, and beneficiaries repay exactly what they borrowed.
The recovery process places the repayment obligation on employers, who are required to deduct 10% of a beneficiary’s salary and remit it to NELFUND once the graduate secures employment. Employers can verify an employee’s loan status using their National Identification Number (NIN) through NELFUND’s database. For self-employed graduates, repayment is managed directly with NELFUND, while those who remain unemployed two years post-NYSC are exempt from repayment until they secure income, with provisions for submitting a sworn affidavit to confirm their status.
Sawyerr highlighted that NELFUND’s portal has seen significant engagement, with 417,000 students registered and 328,000 loan applications processed. The fund is experiencing rapid growth, with up to 9,000 applications received in a single day at its peak. The initiative, which began disbursing loans in July 2024, currently supports students in federal and state-owned universities, polytechnics, and colleges of education, with plans to include skill acquisition programmes in the future.
The 2024 Act has removed barriers from the repealed 2023 legislation, such as family income thresholds and guarantor requirements, making the loans accessible to a broader range of students. Additionally, the Act includes provisions for debt forgiveness in cases of death or extreme hardship and imposes penalties for false statements, with offenders facing up to three years in prison.
Nnenna Akajemeli, National Coordinator for SERVICOM, praised NELFUND’s commitment to service delivery during the inauguration of its SERVICOM unit, which aims to enhance transparency and stakeholder engagement. She noted that the fund is positioned to support indigent students, ensuring no Nigerian is denied higher education due to financial constraints.
As NELFUND continues to roll out its programme in phases, with plans to potentially include private institution students pending legislative approval, the initiative is hailed as a landmark effort to revolutionise education financing in Nigeria, fostering access and equity for future generations.