Ensuring NELFUND’s Success: Strategies for Sustainable Student Loan Repayment

Nigeria has seen many development programs fail due to discontinuity, political shifts, and mismanagement. The Nigerian Education Loan Fund (NELFUND), created under the Students Loan Act of 2024, aims to provide loans to needy tertiary students but needs solid repayment frameworks to remain viable. Employed graduates begin repayment after a two-year grace period post-NYSC. Self-employed beneficiaries struggle with the 10% profit deduction, so realistic tracking and collection methods are essential. For unemployed graduates, the Entrepreneurship, Innovation and Business Incubation Certificate Programme (EIBIC) must equip them with skills to avoid default. Loan terms should also address job loss or death, leveraging identity systems like BVN and national IDs to curb abuse. Interagency collaboration will strengthen sustainability. Tertiary institutions should share academic records for ongoing monitoring. The NYSC’s Education Portal can track beneficiaries, while the Central Bank’s BVN and NIMC identity verification help prevent fraud. Linking NELFUND data with EIBIC performance records will boost graduate employability before repayment starts. Beyond repayment, combining education with entrepreneurship is crucial to tackle graduate unemployment. Initiatives like EIBIC and the Student Venture Capital Grant support student innovations and self-employment. Embedding entrepreneurial training in university curricula and fostering a culture of self-reliance will ensure NELFUND remains a sustainable pillar in Nigeria’s education finance landscape.

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