The Federal Government in the proposed N49.74 trillion 2025 budget has allocated approximately N175.13 million to the Nigerian Education Loan Fund (NELFUND).
The Nigerian Education Loan Fund (NELFUND), a pivotal financial institution under the federal agency, was established to provide loans to eligible Nigerian students for higher education, under the Student Loan Act, 2024.
This allocation is obtained from the 2025 Federal government’s Final budget proposal highlighting the breakdown of funds across various sectors.
In the proposed budget, an allocation of N124.08 million is earmarked for the salary and wages of NELFUND’s employees as this is designated to cover the payment across various government departments.
Of the total amount, N32.72 million is allocated to regular allowances which cover financial benefits beyond the salary.
Additionally, the proposed budget allocates N12.13 million for the Contributory Pension – Employers’ Contribution, which is an essential provision that ensures individuals have a source of income during their retirement years.
Another crucial initiative is the National Health Insurance Authority (NHIS) N6.20 million’ The NHIS is a health insurance scheme in Nigeria that aims to provide universal health coverage.
What you should know
NELFUND was signed into law under the current administration of President Bola Tinubu on 3 April 2024, marking a historic step towards ensuring sustainable higher education and functional skill development for Nigerian students and young people.
- The primary objective is to provide financial support to qualified Nigerians for tuition, fees, and living expenses at approved tertiary and vocational institutions within Nigeria.
- It is governed by a board of directors comprising representatives from relevant ministries, regulatory bodies, and participating agencies, including the Federal Ministries of Finance and Education, among others with the management team led by a managing director, Akintunde Sawyerr responsible for the day-to-day operations
- On January 1, 2025, Akintunde Sawyerr, Managing Director of NELFUND, outlined the organization’s plans and expectations for the year. He emphasized improvements in technology to ensure timely processing. Sawyerr also stated that they currently have only 340,000 student loan applicants and aim to reach 1.8 million applicants within the next 12 to 18 months on Channels Tv.
- In 2024, President Bola Tinubu confirmed the release of N50 billion each to the Nigerian Education Loan Fund (NELFUND) and the Nigerian Consumer Credit Corporation (CREDICORP) from proceeds recovered by the Economic and Financial Crimes Commission (EFCC) as reported by Nairametrics.
On January 3, 2025 NELFUND also announced a successful disbursement of N419,723,446 to 3,032 deserving students at the Federal University of Lafia on their official X(Twitter) page.
