The Nigerian government is considering adopting Malaysia’s model of private sector participation in student loan schemes as part of efforts to reduce its sole financial burden and make the initiative more sustainable.
The move is aimed at diversifying funding sources in the education sector by engaging private partners to inject additional resources and expertise into the student loan programme.
Managing Director and Chief Executive Officer of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, disclosed this during a media engagement in Abuja. He said the government is keen to build a stronger and more efficient student loan system by sharing financial responsibility with private sector partners.
“NELFUND is an organisation that can only be sustained if we have private participation. The government cannot continue to support this 100 per cent financially,” he said.
“As with the student loan scheme in Malaysia, we will eventually need the private sector to wade in, make donations, and commit resources. No one in their right mind will invest in a project they believe is tainted by fraud or led by dishonest leadership.”
Sawyerr urged the media to keep a watchful eye on the Fund’s operations and report any verified cases of misconduct. However, he cautioned against spreading unsubstantiated allegations, warning that such claims could jeopardise the Fund’s long-term viability.
He noted that NELFUND is committed to transparency and accountability, highlighting that the Fund publishes daily loan status updates on its official social media dashboard.
Malaysia’s National Higher Education Fund Corporation (PTPTN), established in 1997, supports students through loans and savings-matching programmes in partnership with private institutions. The Malaysian model has been praised for integrating public-private collaboration to expand access to tertiary education.
The Guardian reports that similar models involving private sector partnerships also exist in countries like the United States, the United Kingdom, and Japan.
