…reliance on annual government funding exposes the scheme to political, fiscal risks, Oye says
With over ₦154 billion already disbursed to students nationwide, the Nigeria Education Loan Fund (NELFUND) is being urged to evolve into a self-financing institution by tapping private capital and international development partnerships to safeguard its future.
In a statement issued on Monday, Dele Kelvin Oye, Chairman of the Alliance for Economic Research and Ethics Ltd/GTE and Chairman of the Nigeria–Türkiye Business Council, said NELFUND’s early achievements have positioned it as one of the most impactful social investment programmes in Nigeria’s recent history, but warned that long-term success would depend on diversifying its funding base beyond government appropriations.
Oye recalled that Nigeria’s history with student loan schemes has been marked by repeated failures, beginning with the Nigerian Students Loans Board established in 1972.
According to him, earlier programmes collapsed due to weak administration, poor loan recovery, corruption, and lack of transparency, creating deep public distrust around government-led student financing initiatives.
Read also: Are public varsities hiking fees to push students towards NELFUND?
Against this, he described the establishment of NELFUND in April 2024 by the administration of President Bola Ahmed Tinubu as a turning point that has broken with the past. Since launching its application portal in May 2024, NELFUND has reportedly disbursed over ₦154 billion to support 788,947 students across 262 public tertiary institutions nationwide.
This includes more than ₦82 billion paid directly to institutions for tuition and mandatory fees, and over ₦72 billion disbursed to students as monthly upkeep stipends.
“It is against this backdrop of repeated disappointment that NELFUND’s rapid and transparent success under President Tinubu’s leadership emerges as truly revolutionary
“The scale and speed of NELFUND’s operations are unprecedented in Nigeria’s history of social investment programs,” Oye said.
He noted that the ₦20,000 monthly allowance has helped ease financial pressures that often force students to abandon their studies.
However, he stressed that reliance on annual government funding exposes the scheme to political and fiscal risks. To ensure permanence, Oye called for a strategic shift towards private capital, philanthropy and global development finance.
He proposed stronger tax incentives to encourage corporate and individual donations, including making all contributions to NELFUND fully tax-exempt under Nigeria’s tax laws.
He cited the Aliko Dangote Foundation’s ₦1 trillion commitment to education over the next decade as evidence of the vast potential of private philanthropy, adding that NELFUND could serve as a transparent and accountable vehicle for channeling such large-scale investments into education and skills development.
Beyond domestic funding, Oye urged NELFUND to actively engage international partners such as the World Bank, African Development Bank, UNICEF and global education financing platforms, leveraging its strong disbursement record to attract both funding and technical expertise.
Aligning NELFUND’s objectives with global education and development goals, he said, would elevate its profile and support its evolution into a globally recognised institution.
He also called for policy reforms to allow NELFUND to establish a professionally managed endowment fund, including a possible exemption from the Treasury Single Account (TSA), similar to models used by other state-backed investment institutions.
According to him, prudent investment of its capital base would generate sustainable returns and reduce long-term dependence on government budgets.
Looking ahead, Oye said the ultimate success of NELFUND should be measured not just by funds disbursed, but by its contribution to Nigeria’s economic transformation.
“As of 2022, over half of Nigerian youth, including graduates, were reported to be unemployed, not due to a complete lack of jobs, but a severe skills mismatch. The experience of the Dangote Refinery, which reportedly had to import skilled technical labor, is a stark reminder of this critical gap between our educational output and industrial needs,” he said.
He urged the fund to deepen support for technical and vocational education, strengthen industry–academia collaboration, and align educational outcomes with labour market needs to address graduate unemployment and skills mismatches.
“NELFUND is uniquely positioned to be the catalyst that bridges this divide. Its expanded mandate to fund TVET is the first, most crucial step. By 2026, this focus must be deepened and institutionalised.
“NELFUND should evolve beyond being a mere financing body to become a strategic influencer of educational content and direction. This can be achieved through several key initiatives:
“Industry-Academia Collaboration: NELFUND can use its funding leverage to promote stronger, mandatory partnerships between tertiary institutions and key industry players.
“Emulating Global Best Practices: Nigeria can learn from world-renowned models of workforce development.
“By strategically linking education financing to skills, jobs and innovation, NELFUND can move beyond loans to become a catalyst for national productivity and shared prosperity,” he added.
