NELFUND SPENDS ₦16BN MONTHLY ON STUDENT UPKEEP, LOAN REPAYMENT YET TO BEGIN

The Nigerian Education Loan Fund is spending about ₦16 billion monthly on student upkeep allowances under its education loan programme, while repayments from beneficiaries have yet to commence.

The development highlights the growing financial commitment required to sustain the Federal Government’s student loan scheme as more Nigerian students access financial support for tertiary education.

NELFUND provides loans to eligible students to cover education-related expenses, including institutional charges and upkeep allowances. The monthly upkeep payments are intended to help beneficiaries meet basic living costs while pursuing their studies.

However, unlike traditional lending arrangements, the fund has not yet begun recovering loans from beneficiaries, as many of the recipients are still studying and have not entered the repayment stage.

Under the student loan framework, beneficiaries are expected to begin repayment after completing their studies and securing employment, subject to the conditions of the scheme.

The ₦16 billion monthly upkeep bill has raised questions about the long-term sustainability and funding of the programme as the number of beneficiaries continues to increase.

NELFUND is expected to continue disbursing funds to eligible students while working with relevant institutions and employers to establish an effective repayment system.

The scheme remains a major part of the Federal Government’s efforts to improve access to tertiary education and reduce financial barriers for Nigerian students.