NELFUND's N355 Billion Loans at Risk Without Recovery System
The iRead To Live Initiative released a policy brief titled "Can NELFUND Sustain Itself? Financing Nigeria’s Student Loan Scheme," warning that NELFUND risks repeating the failures of Nigeria's previous student loan schemes from 1972, 1988, and 1993.
These earlier schemes collapsed due to rapid loan disbursement outpacing government recovery efforts. NELFUND has disbursed approximately N355.87 billion to around 850,000 beneficiaries, with the first enforcement window expected around 2028.
The initiative emphasized the importance of strengthening the loan recovery system before repayments begin, highlighting that 93% of employment in Nigeria was informal as of Q2 2024. NELFUND's program has expanded since its application portal opened in May 2024, processing 1,659,853 applications as of September 3, 2026.
The Federal Government is also working to enhance NELFUND's funding base and pursue broader reforms to improve Nigeria's tertiary education system.
Plus234Feed summary based on reporting from Nairametrics. Read the original report below.
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