A Nigerian support group has described the country’s national student loan program as a “milestone” achievement after it surpassed one million beneficiaries in less than two years.

The Nigerian Education Loan Fund (NELFUND), a flagship initiative of President Bola Tinubu’s administration, reported that 1,164,222 students have now accessed the scheme since its launch in April 2024.

The Tinubu Media Support Group (TMSG) hailed the figures as a “game-changer” for tertiary education in Africa’s most populous nation, where rising living costs have historically forced many students to drop out.

Rapid expansion

In a statement signed by Chairman Emeka Nwankpa and Secretary Dapo Okubanjo, the group noted that the agency had disbursed a total of ₦206.29 billion (approx. $128m) in just 23 months.

The breakdown of the spending includes:

• ₦128.84 billion: Paid directly to 270 institutions to cover tuition fees.
• ₦77.45 billion: Disbursed to students as monthly upkeep allowances.

“This is not a feat to be dismissed,” the group stated. “The agency had little to build on after its creation, but it has ensured that indigent students are no longer denied access to higher education.”

How the scheme works

The Nigerian student loan model is designed to lower the barrier to entry for higher education. Unlike commercial loans, the NELFUND model offers several unique protections:

• Interest-free: Borrowers only repay the principal amount.
• Delayed repayment: Graduates are not required to start payments until two years after completing the mandatory National Youth Service Corps (NYSC) program.
• Employment safeguard: Beneficiaries who remain unemployed after the two-year grace period can request further extensions via an affidavit.

Overcoming skepticism

Despite initial skepticism and “false narratives” surrounding the scheme’s launch, the TMSG noted that the portal has seen a surge in trust, with hundreds of institutions now successfully onboarded.

The group predicted that the number of beneficiaries could double by the end of the president’s first term as more students see the tangible impact of the disbursements.

“NELFUND is one of the driving forces of the ‘Renewed Hope’ agenda,” the statement added, urging Nigerians to maintain faith in the government’s ability to execute “people-oriented” policies.