Southern Students Shun Education Loans, Citing Doubts over Viability

The Managing Director of the Nigerian Education Loan Fund (NELFUND), Dr. Akintunde Sawyerr, has revealed that students from higher institutions in Nigeria’s southern regions are hesitant to apply for educational loans due to doubts about the scheme’s viability. Dr. Sawyerr disclosed this during a briefing at the Presidential Villa in Abuja, following the launch of the loan disbursement by President Bola Tinubu.

Dr. Sawyerr noted a stark contrast in loan applications between the northern and southern regions of the country. He attributed the higher application rates from the North to better coordination by tertiary institutions in that region. “In the southern part of the country, there’s growing awareness and interest, but also a lot of scepticism. The most sceptical parts of the country are in the South; they question everything: Is it true? Is it real? Is it a scam?” he explained.

In response to the doubts, Sawyerr emphasized the authenticity and reliability of the loan fund. “What you witnessed today with us actually starting this disbursement programme is to say that ‘this is not NO FUND. This is NELFUND,’” he stated, reinforcing the government’s commitment to the programme.

Dr. Sawyerr assured that as more loans are disbursed, the scepticism, particularly prevalent in the South, would diminish. He remarked, “Institutions in the North of the country have been very proactive at supporting and helping their students and providing their data to us. But that is to be expected because they seem very well organised in terms of networking in the northern part of the country.”

Despite the current imbalance, NELFUND is taking steps to increase awareness in the southern regions to encourage more students to take advantage of the scheme. Dr. Sawyerr revealed that university students have shown the highest demand for loans, followed by students from polytechnics and colleges of education. “We’re trying to ensure that people know this is not a trick, it’s not a game. Mr. President has backed this with cash and we’re going to disburse that cash,” he added.

One notable exclusion from the scheme is students from private institutions. Sawyerr explained that private universities charge higher fees, and including them in the scheme would undermine the initiative’s goals. “If the government funded private university students, it would be unable to meet the expectations of the initiative,” he said.

Sawyerr expressed confidence that the loan scheme would have a profound positive impact on many lives across Nigeria. “The effect of providing this opportunity for the most needy Nigerians, most capable Nigerians in many ways, and the people who probably will look after us, or whose decisions will impact on us in our old age cannot be underestimated. These are the most important people in the country that we’re trying to affect,” he asserted.

Echoing this sentiment, the National President of the National Association of Nigerian Students, Lucky Imonife, affirmed that the loans were accessible to all students, regardless of their background. “Nigerian students are happy that the dream has come true. It was once a dream, it has become an act and today is the presidential launch and disbursement. Whatever background you belong to, you can access the loan. Once you apply, you will get it, irrespective of your status, your age and your class,” said Imonife.

In April 2024, President Tinubu signed into law the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Bill, 2024. The new law replaces the repealed Student Loan Act of 2023, addressing issues related to governance, management, eligibility criteria, application methods, repayment provisions, and loan recovery.

The Nigerian Education Loan Fund aims to provide sustainable higher education opportunities and skill development for Nigerian students and youths. However, for the scheme to succeed, efforts must continue to dispel scepticism and ensure equal access across all regions. As the programme gains traction, it is hoped that the initial doubts, particularly in the South, will be replaced with confidence and widespread participation.