NELFUND Loan Repayment Begins Two Years After NYSC, Says CEO

The Managing Director and CEO of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, has announced that students benefiting from the government’s education loan scheme will not be required to begin repayment until two years after completing their National Youth Service Corps (NYSC).

Sawyerr made this statement during an interview on TVC News, where he outlined the loan repayment structure and obligations.

Loan Repayment Structure and Employer Responsibility

According to Sawyerr, the responsibility of loan repayment primarily falls on employers of beneficiaries who secure jobs after their NYSC service.

“Two years after completion of their NYSC, there is a requirement for the loans to be paid back, but the obligation to repay rests on the employer,” he explained.

He further detailed that employers are mandated to verify the employment status of new hires using a NELFUND database, ensuring that those with outstanding loans are registered for automatic deductions.

“The employer checks the name and National Identification Number (NIN) of the individual before employment. Once confirmed, the employer is responsible for deducting 10% of the employee’s salary and remitting it to NELFUND monthly,” he added.

Sawyerr emphasized that at no point is the repayment burden placed directly on the employed individual, as deductions are made at the payroll level.

Related Post

2024/2025 NELFUND: Full List of Universities and Polytechnics Approved for Student Loan

Repayment Plan for Self-Employed Beneficiaries

For beneficiaries who become self-employed, the repayment obligation shifts to them. Such individuals will be required to make direct payments to NELFUND, unlike salaried employees whose deductions are automated through their employers.

However, Sawyerr clarified that graduates who remain unemployed after their NYSC service are not required to make any loan repayments until they secure employment.

Consideration for Private University Students

Currently, the NELFUND loan scheme is limited to students in public higher institutions, as stipulated by the existing legal framework. However, Sawyerr disclosed that President Bola Ahmed Tinubu has expressed interest in expanding the program to include students from private institutions in the future.

“For now, we only give loans to students of public institutions because the law doesn’t allow us to extend this support to private institutions. However, I’m aware that President Tinubu has indicated his willingness to eventually include all students,” he said.

Impact and Funding Distribution

As of February 3, 2025, NELFUND had disbursed approximately ₦20 billion in institutional fees, benefiting 192,906 students across 150 public tertiary institutions in Nigeria. Additionally, 169,114 students have received stipends totaling ₦12.8 billion, with each student receiving ₦20,000 per month.

The NELFUND initiative was formally established through a bill signed into law on April 3, 2024. The program aims to provide financial assistance to eligible Nigerian students for tuition, fees, and living expenses in approved tertiary and vocational institutions.

With the structured repayment system in place, NELFUND is set to ensure the sustainability of the student loan scheme while reducing financial barriers to higher education in Nigeria.