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Nigerian Education Loan Fund Disburses N84.2bn to Students as New Act Expands Access

Over 350,000 Students Register for Loans, Lawmaker Hails Impact of Student Loan Access to Higher Education Act

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The Nigerian Education Loan Fund (NELFUND) has disbursed N84.2 billion to students as part of the Federal Government’s effort to expand access to higher education. According to Gboyega Isiaka, Chairman of the House of Representatives Committee on Polytechnic and Higher Technical Education, the funds were distributed to applicants by the end of September 2024.

Speaking at the 36th annual conference of the Federal Government College, Maiduguri Old Students Association in Abeokuta, Isiaka revealed that the disbursements included N27.5 billion for institutional facilities and N56.7 billion for student upkeep. Over 350,000 students have registered on the NELFUND portal, with 258,943 applying for either institutional or upkeep loans, or both.

The lawmaker, who represents Yewa North/Imeko-Afon Federal Constituency in Ogun State, highlighted the significance of the recently passed Student Loan Access to Higher Education Act 2024. He described the new legislation as a vital step towards bridging the financial gap for students, ensuring that deserving Nigerians have the opportunity to access quality higher education.

“The 2024 Act removes several barriers that previously disqualified applicants based on their parents’ financial history,” Isiaka explained. “The guarantor requirement has been eliminated, making it easier for students to apply, with loans granted based on identity verification and application guidelines.”

Unlike the previous 2022 bill, the new Act also eliminates the family income threshold, allowing all Nigerian students to apply for loans. Repayments are expected to begin two years after beneficiaries complete their National Youth Service Corps (NYSC), although extensions may be granted for those who can demonstrate, via affidavit, that they are unemployed or lack an income. In cases of death or incapacitation, the loan is forgiven. However, anyone found guilty of providing false statements to the Fund regarding repayment faces a felony charge and a potential three-year prison sentence.

Isiaka hailed the resuscitation of the student loan initiative, which originally began in 1972 but was later suspended, calling it a “game changer” for education in Nigeria. “This is more than just a statistic—it represents hope, opportunity, and a commitment to empowering our students to succeed,” he remarked.

The conference also featured reflections on Nigeria’s broader educational challenges. Mr. Chris Abu, National President of the Federal Government College, Maiduguri Old Students Association, expressed concern over the security issues facing the country, which he said were undermining the core mission of Federal Government Colleges, known as Unity Schools.

Abu lamented that the original aim of promoting national integration through diverse student bodies had been compromised by security challenges, particularly in the northern states. “In the past, indigenous students made up only 30% of our student population, but now that figure has risen to between 60% and 80%. This shift defeats the purpose of Unity Schools, which were designed to foster national unity by bringing together students from various backgrounds,” he said.

Deji Eniseyin, the State Chairman of the Federal Government College, Maiduguri Old Students Association, echoed these concerns, emphasising the importance of maintaining the schools’ original mandate. “The purpose of Unity Schools is to unite the country and foster integration. When we were in school in the early 90s, we had classmates from across Nigeria. It helped us understand the diverse nature of our nation and strengthened the unity of the country,” Eniseyin concluded.

As Nigeria continues to grapple with security and educational challenges, stakeholders at the event reiterated the need for federal, state, and local governments, alongside the private sector, to work collaboratively to revitalise the country’s educational system.

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