The Nigerian Education Loan Fund (NELFUND) has started distributing monthly stipends of N20,000 to beneficiaries, with 20,371 students from six tertiary institutions receiving their July payments. Mr. Ibom Uche, Director of Finance and Accounts at NELFUND, shared this update on Monday via the fund’s official X (formerly Twitter) account.
Distribution Details
The stipend distribution is part of NELFUND’s broader initiative to support students across Nigeria. The total allocation for student loans amounts to N2.5 billion, distributed across various institutions nationwide.
The six institutions where payments have begun include:
- Bayero University Kano
- Federal University Dutsin-Ma
- University of Ilorin
- University of Benin
- University of Ibadan
- University of Maiduguri
NELFUND is also initiating payments for students from approximately 55 additional tertiary institutions, and it expects to complete this process within the next two weeks.
Background
The establishment of NELFUND is part of the revised Student Loan Act 2024, which aims to remove financial barriers and enhance access to education for all Nigerian students. The fund is primarily supported by 1% of revenues from taxes, levies, and duties collected by the Federal Inland Revenue Service, Nigerian Immigration Service, and Nigerian Customs Service. Additional funding sources include natural resource profits, education bonds, endowment funds, and donations.
Loan Coverage and Repayment
NELFUND covers tuition, fees, and maintenance costs. Repayment of the loans begins two years after completing the National Youth Service Corps (NYSC) program.
Recent Developments
On July 7, 2024, NELFUND approved student loan applications for 36 state-owned universities, with an additional 12 tertiary institutions approved on July 10. On August 2, 2024, the fund disbursed N2.5 billion in student loans to 22,120 eligible students and allocated N442 million for students’ upkeep funds for July.
In a related development, President Bola Tinubu announced on July 4, 2024, the release of N50 billion to NELFUND from proceeds recovered by the Economic and Financial Crimes Commission (EFCC).
