The Federal Government has allocated N175.13 million to the Nigerian Education Loan Fund (NELFUND) as part of its proposed N49.74 trillion 2025 budget. NELFUND, established under the 2024 Student Loan Act, aims to provide loans to eligible Nigerian students pursuing higher education.
Budget Breakdown
The proposed budget allocates N124.08 million for employee salaries and wages across various government departments. An additional N32.72 million is set aside for regular allowances, covering financial benefits beyond base salaries. The allocation also includes N12.13 million for the Contributory Pension—Employers’ Contribution—to ensure income security during retirement.
Furthermore, N6.20 million has been earmarked for the National Health Insurance Scheme (NHIS), which seeks to provide universal health coverage.
Key Highlights
NELFUND was signed into law on April 3, 2024, by President Bola Tinubu, marking a significant step toward sustainable higher education financing and skill development. Its primary mandate is to provide financial support for tuition, fees, and living expenses at accredited tertiary and vocational institutions within Nigeria. The fund is overseen by a board of directors comprising representatives from key ministries and agencies, with Akintunde Sawyerr serving as Managing Director.
On January 1, 2025, Sawyerr outlined plans to enhance technology for timely loan processing. He reported that NELFUND had 340,000 student loan applicants and aims to reach 1.8 million within 12 to 18 months.
Recent Developments
In 2024, President Tinubu authorized the release of N50 billion each to NELFUND and the Nigerian Consumer Credit Corporation (CREDICORP) from Economic and Financial Crimes Commission (EFCC) recoveries. On January 3, 2025, NELFUND announced the successful disbursement of N419.72 million to 3,032 students at the Federal University of Lafia, as shared on its official social media channels.
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