The Nigerian Education Loan Fund (NELFUND) has explained why it did not extend its interest-free loan facility to students in private tertiary institutions, citing the provisions of its Establishment Act.

According to NELFUND’s Managing Director, Akintunde Sawyerr, the law establishing the fund specifically mandates it to provide loans to public tertiary institutions.

The NELFUND Act 2024, signed by President Bola Tinubu in April 2024, provides zero-interest loans to Nigerian students in public tertiary institutions to cover tuition and upkeep.

Since its inception, NELFUND has disbursed over N161.97 billion to tertiary institutions for tuition fees and upkeep for over 864,798 students across the country.

Some prominent Nigerians, including Chief Afe Babalola (SAN), Founder and Chancellor of Afe Babalola University, Ado-Ekiti (ABUAD), have criticised the exclusion of private university students from the loan scheme, questioning why they were not considered Nigerians.

Babalola also pointed out that private universities are excluded from TETFund, despite contributing to the fund through taxes. Sawyerr acknowledged that the Fund was established to support all Nigerians, but noted that it needs to start with public institutions and gradually expand its focus when the law permits.

Executive Director, Operations, NELFUND, Mustapha Iyal, added that the government has more control over public tertiary institutions than their private counterparts