The National Economic Council (NEC) has specified the jurisdiction of the Nigerian Education Loan Fund (NELFUND) for the student loan scheme.

The key reasons for granting these powers are to ensure sustainable and transparent management of the student loan scheme.

More so, help break financial barriers for Nigerian students who may otherwise drop out due to a lack of funds.

The power received by the NELFUND will enable it to effectively coordinate with public tertiary institutions and process large volumes of student loan applications. It provides it with the required resources for timely loan disbursement directly to institutions and students.

NELFUND, as an agency, will be responsible for the operational management and implementation of the student loan scheme. It will carry out these tasks effectively under the oversight of the government.

This strategic empowerment reflects the council’s intent to ensure that the loan scheme runs efficiently, transparently, and inclusively.

NELFUND received the endorsement to formally implement the student loan initiative effectively across all tiers of government and stakeholders. This endorsement provides it with the highest policy backing for the loan scheme.

SLS Approval and Disbursement Authority

The council authorized NELFUND to receive, process, and approve student loan applications. It is expected to disburse funds directly to educational institutions for tuition and, optionally, to students for upkeep.

NELFUND also has the power to enforce data accuracy and institutional cooperation by imposing sanctions or withdrawing institutions’ eligibility. Certain standards are expected of every participant institution, and failure to comply with verification and reporting protocols could incur sanctions.

The council mandated NELFUND to implement the loan scheme in cycles starting from May 2025, with planned expansions and enhancements. This aims to promote equitable access to education financing nationwide.

NEC approved the scheme’s offering of zero-interest loans with a repayment mechanism tied to students’ post-graduation income. This will facilitate financial inclusion without the burden of high interest.