Tinubu Approves ₦35 Billion for Student Loan Scheme

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….NELFUND Approves 70,000 Applications; Another 50,000 Pending Approval

President Bola Tinubu has approved ₦35 billion for the launch of the student loan scheme. To date, the Nigerian Education Loan Fund (NELFUND) has approved 70,000 applications, with an additional 50,000 applications under evaluation and expected to be approved within 30 days.

According to NELFUND Managing Director/Chief Executive Officer Akintunde Sawyerr, the funds will be disbursed in accordance with the academic timetables and calendars of each institution. He stated, “The portal for students to apply for the loan opened on May 24, 2024. The portal will be permanently open because institutions don’t have a uniform calendar.”

The scheme is projected to benefit over 1.2 million students. Applicants must provide their Joint Admissions and Matriculation Board (JAMB) letter, National Identification Number (NIN), and Bank Verification Number (BVN). Initially, students from Federal Government-owned tertiary institutions will receive the loans, followed by those from state-owned institutions. NELFUND will start receiving applications from students in state-owned institutions from June 25, 2024. The loans, equivalent to the tuition fees of the benefitting students, will be paid directly to their institutions. The agency is collaborating with 126 tertiary institutions on this initiative.

A source stated, “President Bola Tinubu has graciously approved ₦35 billion for the student loan scheme. The funds are awaiting disbursement. About 70,000 applications have been approved by NELFUND management, and 50,000 applications are currently being evaluated. These applications will be approved within 30 days. We receive an average of 1,500 applications a day. Mr. President has provided enough funds to accommodate every Nigerian student who desires the loan.”

President Tinubu signed the bill for the scheme into law on April 3, fulfilling his electoral promise that no Nigerian student would drop out of school due to lack of funds. Repayment will commence two years after the completion of the National Youth Service Corps (NYSC) programme. This ambitious programme will be funded with one percent of the total annual collectable revenue by the Federal Inland Revenue Service (FIRS).