FG Committed To Interest Free Student Loan For Future Generations

The Nigerian government says its interest-free student loan scheme is here to stay, promising long-term support for students in tertiary, technical, and vocational institutions across the country.

At a recent press event in Abuja, the Managing Director of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, said the initiative is not just a temporary intervention but a lasting national project. He described the scheme as a bold step by President Bola Tinubu to create access to education for all, regardless of background or economic status.

The programme is already reaching thousands. Since its launch in May 2024, over N77 billion has been disbursed to 396,252 students in 210 institutions nationwide. The money covered both tuition and upkeep. More than 645,000 students have successfully applied so far, showing how much demand there is.

While the scheme is funded by the federal government, NELFUND is urging private companies, donors, and philanthropists to come on board. According to Sawyerr, long-term success will require wide support from across society—not just from government alone. He also stressed the need for transparency, assuring that the Fund is run with strict ethical standards. To build trust, NELFUND now publishes daily data on loan disbursement for public viewing.

To strengthen the impact beyond university campuses, the scheme has been expanded to students in technical and vocational training schools. NELFUND is working with national education bodies to support the federal government’s renewed focus on job creation through practical skills.

Another major feature is a new job portal in the works. The portal will connect graduates who benefited from the loan to employment opportunities both within Nigeria and abroad. It’s expected to go live in 2026. The idea, Sawyerr said, is to support students even after graduation and give them a clear path to self-reliance.

For those worried about repayment, NELFUND clarified that no graduate is expected to begin repayment until they have a stable job. Even then, repayment is flexible. If a beneficiary is unemployed, they must notify the Fund every three months through a sworn affidavit. In the case of job loss, disability, or death, the loan terms are adjusted accordingly—with loans fully written off in some cases.

The agency believes the student loan programme can become a national tool for progress if Nigerians work together to protect it. As more students register and more funds are disbursed, NELFUND says it is ready to ensure no qualified student is left behind simply because they cannot afford tuition or living costs.

With education seen as a major way to fight poverty and unemployment, the success of this scheme could shape Nigeria’s future in lasting ways. The agency is calling on students across all public universities, polytechnics, colleges, and training schools to take advantage of the opportunity.