NELFUND: The journey so far
By Femi Akinfala
As a parent and former academic, I share the joy of countless Nigerian parents and students who have benefited from the Nigerian Education Loan Fund (NELFUND). My experience as a lecturer, which included roles as a course advisor, participation in the Dean of Student Affairs scholarship committee, and membership of the Senate of the University of Lagos, the highest decision-Making body—afforded me invaluable insights into the challenges faced by students from various backgrounds, particularly those from low-income families. It has been gratifying to witness NELFUND, where I currently serve as Executive Director of Finance and Administration, make a significant impact on the lives of these students.
Reflecting on NELFUND’s journey, I am proud to say it has defied sceptics. In a remarkably short time, the agency has optimised its processes and consistently fulfilled its mandate. The successful implementation, transparency, and growing public support for the student loan scheme have validated its purpose and confirmed the need for its creation. NELFUND is now a trusted resource for students across Nigeria, helping to transform their aspirations into reality regardless of their background.
The report below analyses the Nigeria Education Loan Fund (NELFUND) in Nigeria, focusing on institutional participation, loan applications, and loan disbursements from its inception (April – Sept. 2024). The analysis highlights significant regional disparities in loan application and disbursement patterns, with the North Central zone leading. Followed closely by the South West, the South East recorded the lowest figures in both categories. The distribution of public Universities, Polytechnics and Colleges of Education underscore a preference for university-level education, which has the highest number, followed closely by polytechnics and colleges of education. Additionally, the report reveals a notable gender disparity in loan distribution, with 71% of loans awarded to male applicants, raising concerns about inequality in access to educational funding. The data also indicates a steady rise in loan disbursements, reflecting increasing demand and responsiveness within the funding system.
- PUBLIC UNIVERSITIES, POLYTECHNICS, AND COLLEGES OF EDUCATION ENLISTED ACROSS NIGERIA’S GEOPOLITICAL ZONES
PUBLIC UNIVERSITIES ENLISTED AS AT 30TH SEPTEMBER, 2024
TOTAL NUMBER OF PUBLIC UNIVERSITIES ENLISTED: 116
FIGURE 1
Universities are the most prevalent institutions across Nigeria, forming the backbone of higher education. The South West zone leads with 24 public Universities, In contrast, the North East has only 14.
PUBLIC POLYTECHNICS ENLISTED
TOTAL NUMBER OF PUBLIC POLYTECHNICS ENLISTED: 73
FIGURE 2
Polytechnics in the South West has a strong presence, totalling 19 institutions. Conversely, the South East has the fewest polytechnics at 9.
PUBLIC COLLEGES OF EDUCATION ENLISTED
TOTAL NUMBER OF PUBLIC COLLEGES OF EDUCATION ENLISTED: 68
FIGURE 3
Public Colleges of Education, which play a vital role in teacher training, are most prevalent in the North East, with 15 institutions. Conversely, the South East has the lowest number of education colleges at 5.
- North West Zone
- Universities:21
- Polytechnics:10
- Colleges of Education:12
The North West shows a balanced distribution, with universities being the most prevalent.
- North East Zone
- Universities:14
- Polytechnics:11
- Colleges of Education:15
In contrast, the North East has the highest number of colleges of education, although the number of universities is relatively low.
- North Central Zone
- Universities:19
- Polytechnics:11
- Colleges of Education:14
The North Central Zone exhibits a balance among the three types of institutions, with universities leading slightly.
- South East Zone
- Universities:16
- Polytechnics:9
- Colleges of Education:5
The South East has a strong university presence, but the significantly lower number of colleges of education.
- South South Zone
- Universities:22
- Polytechnics:13
- Colleges of Education:7
Similar to the South East, the South South Zone have a high number of universities, with fewer colleges of education.
- South West Zone
- Universities:24
- Polytechnics:19
Colleges of Education:15
The South West leads in the total number of institutions across all types with a strong presence of universities and polytechnics.
- TOTAL APPLICATIONS ACROSS NIGERIA’S GEOPOLITICAL ZONES AS AT 30TH SEPTEMBER, 2024
TOTAL NUMBER OF APPLICATIONS: 267,731
GEOPOLITICAL ZONE | APPLICATIONS |
NORTH CENTRAL | 44,112 |
SOUTH WEST | 37,109 |
SOUTH SOUTH | 19,431 |
NORTH WEST | 82,706 |
SOUTH EAST | 12,796 |
NORTH EAST | 71,577 |
FIGURE 4
Figure 4 shows the number of student applications by region
TOTAL NUMBER OF APPLICATIONS AS OF 30TH SEPTEMBER, 2024: 267,731
- North West: The highest number of applications came from this zone, with 82,706, surpassing all other regions.
- North East: Following closely behind, this zone recorded 71,577applications, ranking second overall.
- North Central: With 44,112applications, it ranks third, though significantly lower than the top two northern zones.
- South West: Leading the southern regions, it submitted 37,109applications, but still trails behind the northern zones.
- South South: This zone recorded 19,431applications, almost half of the South West’s figure.
- South East: With only 12,796applications, it ranks the lowest among all zones.
- TOTAL NUMBER OF STUDENT ENROLLMENTS IN PUBLIC INSTITUTIONS ACROSS NIGERIA’S SIX GEOPOLITICAL ZONES.
TOTAL NUMBER OF STUDENTS ENROLLMENTS: 2,529,679
GEOPOLITICAL ZONE | NUMBER |
NORTH CENTRAL | 651,838 |
SOUTH WEST | 504,463 |
SOUTH SOUTH | 396,201 |
NORTH WEST | 386,201 |
SOUTH EAST | 301,657 |
NORTH EAST | 247,114 |
- North Central: This zone has the highest student population, totaling651,838.
- South West: The region follows with a student count of504,463.
- South South: It reports396,201 students, placing it third overall.
- North West: This zone has386,201 students, slightly fewer than the South South.
- South East: The student population in this region stands at301,657.
- North East: With247,114 students, it has the lowest population among all zones.
- TREND IN LOAN DISBURSEMENT (1ST TO 5TH DISBURSEMENT) AS OF 30TH SEPTEMBER, 2024
DISBURSEMENT | AMOUNT DISBURSED |
1ST DISBURSEMENT | 1,172,388,340 |
2ND DISBURSEMENT | 853,775,000 |
3RD DISBURSEMENT | 919,763,815 |
4TH DISBURSEMENT | 2,146,183,516 |
5TH DISBURSEMENT | 4,318,592,628 |
UPKEEP | 839,460,000 |
TOTAL | 10,250,163,299.80 |
- The 1st disbursement totaled ₦1,172,388,340.
- The 2nd disbursement amounted to ₦853,775,000.
- The 3rd disbursement was ₦919,763,815.
- The 4th disbursement significantly increased to ₦2,146,183,516.
- The 5th disbursement reached ₦4,318,592,628, marking the highest amount.
- The Upkeep disbursement was ₦839,460,000.
- In total, the overall disbursements sum to₦10,250,163,299.80
- LOAN DISTRIBUTION ACCORDING TO GENDER
GENDER | VALUE | PERCENTAGE |
MALE | ₦7,277,615,942.29 | 71% |
FEMALE | ₦2,972,547,357.51
|
29% |
FIGURE 5
Males: 71% of the total loans was distributed to male applicants.
Females: 29% of the total loans was distributed to female applicants.
- Significant Gender Gap: There is a clear disparity in loan distribution, with males receiving a considerably larger share suggesting that males and females benefit disproportionately from loan disbursements.
Since its inception, NELFUND has established partnerships with 257 tertiary institutions across Nigeria, comprising 112 public universities, 71 polytechnics, and 74 colleges. To date, we have gathered data on 2,529,679 students, including 1,932,352 from universities, 407,089 from polytechnics, and 188,908 from colleges of education. We have disbursed over ₦10 billion in student loans, with ₦9.4 billion allocated for tuition and ₦839 million for living allowances. So far, 88,623 students have benefited from our scheme. Recently, we registered 361,994 students, with 271,524 applying for upkeep and allowances amounting to ₦60 billion, while 90,470 students requested tuition loans, leading to a total loan request of over ₦88 billion. Notably, the Northwest recorded the highest loan applications at 25%, followed by the Northeast at 23%, and the North Central at 22%.
NELFUND’s loan program stands out not only for being interest-free but also for its fully digitised, convenient process that does not require physical presence. Borrowers are only required to repay 10% of their salary or income once they secure employment. If a borrower remains unemployed for two years after completing National Youth Service Corps (NYSC), NELFUND provides understanding rather than pressure. In cases of permanent disability or death, loans are completely forgiven.
Contrary to the common belief that connections are needed to access government services, NELFUND employs a data-driven, transparent approach that minimizes political interference and external pressures. We are setting a new benchmark in public service, helping to rebuild trust within the community. I firmly believe that student loans foster fairness and social justice by providing low-income students equal access to higher education as their more privileged peers.
I commend President Bola Tinubu for his leadership in revitalizing this loan scheme and his unwavering commitment to social justice. Alongside other government initiatives, this guarantees a brighter future for our children and for Nigeria. The aspirations, resilience, and innovation of tomorrow’s leaders are the foundation of the future we envision, with education as a central pillar of President Tinubu’s Renewed Hope Agenda. Additionally, President Tinubu has recently submitted a bill to the National Assembly proposing an amendment to the Tertiary Education Trust Fund (TETFUND) Act of 2011. This amendment would allocate 30% of TETFUND’s revenue to NELFUND, ensuring the sustainability of the loan scheme and benefiting Nigerian students and their families.
I firmly believe Nigeria is on the right track. While the journey may have its challenges, it holds the promise of unprecedented economic growth, renewed hope, and national prosperity. I would also like to acknowledge the outstanding work of NELFUND’s management, staff, and board, particularly our Chief Executive and Managing Director, Akintunde Sawyerr, whose dedication to excellence has ensured the efficiency, transparency, and far-reaching impact of our loan scheme. NELFUND serves as a critical social infrastructure, fully accountable and open to scrutiny by anti-corruption agencies, including the Economic and Financial Crimes Commission (EFCC).
At NELFUND, we are committed to investing in the next generation, harnessing their potential, and building a more inclusive and equitable future. We will continue to build on our progress, enhance our scheme, and promote greater inclusivity for all.
Fred Femi Akinfala Ph.D is Director, Finance and Administration, Nigerian Education Loan Fund, Abuja