The Nigerian Education Loan Fund (NELFUND) says it has disbursed a total of N154.3 billion as student loans to 788,947 beneficiaries across the country within 19 months of the commencement of the Nigeria Student Loan Scheme.

The Managing Director of NELFUND, Mr Akintunde Sawyerr, disclosed this on Tuesday during a virtual briefing on the implementation of the scheme.

Sawyerr said the beneficiaries were selected from 1,265,509 applications received since the commencement of disbursement on May 24, 2024.

He explained that out of the total amount disbursed, N82.34 billion was paid directly to educational institutions as tuition and approved institutional charges, while N72.02 billion was released to students as upkeep allowances.

According to him, the disbursements covered students in 262 public tertiary institutions nationwide, including universities, polytechnics and colleges of education.

> “As of today, we have turned 788,947 applicants into beneficiaries. We have received 1,265,509 applications in total. We have disbursed N82.34 billion in institutional fees and N72.02 billion for students’ upkeep allowances across 262 institutions,” Sawyerr said.

He attributed the disparity between the number of applications received and approved beneficiaries to multiple applications by individuals and delays in verification by institutions.

> “One individual may apply more than once, and that sometimes leads to double counting. Also, schools are required to confirm that applicants are still bona fide students. Some institutions respond immediately, while others take time,” he explained.

Sawyerr noted that NELFUND processes applications on a daily basis, adding that the most recent dashboard showed 3,008 new applications recorded on Tuesday alone, representing a 0.2 per cent increase from the previous day.

He said that within the previous week, the fund received about 50,000 applications, describing the volume as substantial and requiring thorough screening.

> “We must ensure that there is no fraud. Applications are batched by institutions and sent for verification. Because we are dealing with public funds, speed is important, but safety is more critical so that government money is not lost,” he said.

NELFUND was established following the signing into law of the Nigeria Student Loan Scheme Act by President Bola Ahmed Tinubu in April 2024.

The scheme provides interest-free loans to students in public tertiary institutions to cover tuition fees and essential living expenses.

Under the arrangement, beneficiaries are required to commence repayment only after securing employment upon completion of the National Youth Service Corps (NYSC) programme.

Sawyerr urged eligible students to take advantage of the scheme, stressing that disbursements are strictly cashless.

> “Applicants must have bank accounts. Payments are never made in cash. One payment goes directly to the institution on behalf of the student, while the other is paid to the student as a stipend,” he said.

He clarified that institutional payments cover tuition and other approved charges, excluding accommodation unless confirmed by the loans committee.

The NELFUND boss added that repayment is expected to begin two years after completion of NYSC, particularly for beneficiaries who have secured employment.