The Nigerian Education Loan Fund is currently spending about ₦16 billion monthly on student upkeep, even as loan recoveries from beneficiaries are yet to begin, its Managing Director, Akintunde Sawyerr, has disclosed.

Akintunde Sawyerr, who made the disclosure on Monday, also dismissed allegations of financial misappropriation within the student loan scheme, insisting that there is no evidence to support claims that NELFUND funds have been mismanaged.

According to him, the financial pressure on the scheme has prompted the Federal Government to explore alternative funding sources, including recovered proceeds of crime and other available funds.He explained that the student loan programme was part of the government’s broader welfare intervention following the removal of the fuel subsidy, with funds being redirected towards programmes designed to support vulnerable Nigerians.

Sawyerr said NELFUND’s disbursement process is electronic and traceable, with institutional fees paid directly to verified schools while upkeep allowances are transferred into beneficiaries’ bank accounts.He cited the recent transfer of more than ₦1 billion to the University of Ibadan as an example of the fund’s direct institutional payments.

The NELFUND boss acknowledged that some students had experienced difficulties with applications, approvals and payments but described such cases as rare and said the agency addresses them when they arise.

On the sustainability of the scheme, Sawyerr said NELFUND could not depend indefinitely on recovered proceeds of crime, stressing that its enabling law permits the fund to attract private investment, charitable donations and generate income through investments. He added that the long-term survival of the student loan programme would require broader participation from the private sector and sustained government commitment.