The Managing Director of the Nigerian Education Loan Fund (NELFUND) Akintunde Sawyerr, has attributed delays in the disbursement of student loans to weak information technology systems and inaccurate data provided by tertiary institutions.
Speaking in an interview, Sawyerr explained that the loan scheme is largely driven by an automated system that depends heavily on data supplied by schools about their students. According to him, incorrect or incomplete information often disrupts the processing of applications.
“Our system is largely IT-based, and we depend heavily on data provided by different schools about their students,” he said. “Students cannot successfully apply for the loan if their institutions’ data is incomplete or inaccurate. If the data is wrong, the system simply will not process the application.”
He noted that varying levels of IT efficiency across institutions have made integration difficult for the scheme. Each school operates its own processes and systems, creating challenges when aligning them with the loan platform.
Sawyerr added that some institutions also struggle to confirm receipt of funds promptly due to limitations in monitoring their accounts, which can lead to communication gaps and further delays.
The NELFUND boss also cited differences in academic calendars across universities and other tertiary institutions as another challenge affecting smooth loan disbursement.
“Institutions operate on different academic calendars, with varying timelines for registration and examinations. Our disbursement process is tied to when applications are processed, not necessarily to each school’s schedule,” he said.
Addressing reports that more than 11,000 students were affected by unpaid upkeep allowances earlier this year, Sawyerr said several issues contributed to the problem. These include incorrect bank account details provided by applicants, name mismatches, and cases where individuals used another person’s Bank Verification Number(BVN).
He also clarified that the N20,000 monthly upkeep allowance is a separate application from the main student loan and does not cover a full 12-month period from the time of approval. Instead, it is calculated based on the remaining duration of the academic session.
Despite concerns from some students that the allowance has become inadequate due to rising living costs, Sawyerr said there were currently no plans to increase the amount.
“At the moment, there are no plans to increase the allowance in the immediate future,” he said, adding that frequent reviews would not be feasible given economic realities.
On transparency, the NELFUND managing director said all processes within the scheme are handled electronically to ensure accountability.
Funds are transferred directly from the Central Bank of Nigeria (CBN)to the accounts of beneficiary institutions, creating a clear audit trail.
He explained that schools are also required to provide acknowledgement receipts for funds received, which are made public to allow Nigerians to verify that the money reaches the intended institutions.
Sawyerr clarified that the student loan is interest-free and repayment will not begin until two years after beneficiaries complete their service in the National Youth Service Corps (NYSC) scheme.
According to him, repayment will be handled through employers, who will deduct 10 per cent of the beneficiary’s salary and remit it to the loan scheme until the debt is fully repaid.
To improve the efficiency of the programme, Sawyerr urged tertiary institutions to upgrade their IT infrastructure.
