NELFUND Distributes Monthly Stipends to 20,371 Students

By AmforGod J. Olisa

The Nigerian Education Loan Fund (NELFUND) has initiated the distribution of N20,000 monthly stipends to beneficiaries, with 20,371 students from six tertiary institutions successfully receiving their July payments.

Mr. Ibom Uche, Director of Finance and Accounts at NELFUND, made this announcement via a statement on NELFUND’s official X (formerly Twitter) handle on Monday. The distribution of stipends follows the recent announcement of ongoing student loan disbursements, with a total allocation of N2.5 billion to various institutions across the country.

“The Management of the Nigerian Education Loan Fund (NELFUND), under the leadership of Mr. Akintunde Sawyerr, the Managing Director, has announced the successful disbursement of N20,000.00 monthly stipends for the month of July to 20,371 students from six tertiary institutions,” the statement read.

Institutions Receiving Payments

The statement highlighted that the students who have received their July stipends are those whose institutional fees have already been covered by NELFUND. The six tertiary institutions where payments have commenced include:

– Bayero University Kano
– Federal University Dutsin-Ma
– University of Ilorin
– University of Benin
– University of Ibadan
– University of Maiduguri

NELFUND is also working to initiate the payment process for students from approximately 55 more tertiary institutions. This process is expected to be completed within the next two weeks, ensuring all eligible students receive their stipends promptly.

 About the Student Loan Act 2024

The revised Student Loan Act 2024 established NELFUND to remove financial barriers and make education accessible to all Nigerian students, regardless of their economic background. NELFUND is primarily funded by 1% of revenues from taxes, levies, and duties collected by the Federal Inland Revenue Service, Nigerian Immigration Service, and Nigerian Customs Service. Additional funding sources include natural resource profits, education bonds, endowment funds, and donations.

The loans cover tuition, fees, and maintenance costs, with repayment starting two years after completing the National Youth Service Corps (NYSC) program.

 Recent Developments

– July 7, 2024: NELFUND announced the approval of 36 state-owned universities for student loan applications.
– July 10, 2024: An additional 12 state-owned tertiary institutions were approved for student loan applications.
– August 2, 2024: NELFUND announced the disbursement of N2.5 billion in student loans, benefiting 22,120 eligible students across various institutions. Additionally, N442 million has been allocated for students’ upkeep funds for July.

In a speech on July 4, President Bola Tinubu announced the release of N50 billion to NELFUND from proceeds recovered by the Economic and Financial Crimes Commission (EFCC).

The NELFUND initiative underscores the government’s commitment to making education accessible and affordable for all Nigerian students, ensuring they have the financial support needed to pursue their academic goals without undue stress.