The National Education Loan Fund (NELFund) officially launched on Wednesday, a significant step in providing financial aid to students across Nigeria.
However, the initiative faces skepticism, particularly from the southern states.
President Bola Tinubu inaugurated the first tranche of funds, amounting to N32 billion, aimed at empowering Nigerian youth and breaking financial barriers to education.
The NELFund portal has registered 164,000 students, with 103,000 applying for loans.
Despite the promising start, many southern states remain doubtful about the fund’s implementation.
Akintunde Sawyerr, NELFund’s Managing Director, acknowledged these concerns, citing data challenges in verifying indigent applicants as a primary hurdle.
Sawyerr highlighted the lack of comprehensive data needed for credit assessments. The fund relies on bank verification numbers (BVN), National Identification Numbers (NIN), and educational institution data to determine eligibility.
More applications have been received from northern states, where students have shown greater confidence in the fund.
Sawyerr pointed out that skepticism in the south might stem from uncertainty about the program’s viability.
NELFund offers two types of loans: educational fees paid directly to institutions and upkeep loans for student stipends.
The focus is currently on government-owned institutions to ensure a smooth rollout.
President Tinubu emphasized education as a critical tool against poverty and insecurity, linking the nation’s challenges to a lack of educational opportunities.
He reaffirmed his commitment to inclusive growth through education.
As NELFund continues its rollout, efforts to address data issues and regional skepticism will be crucial. By building trust and ensuring transparency, the program aims to support more students nationwide and foster a fairer society.