NELFUND Faces Funding Crisis as Loan Recoveries Stall Amid ₦16bn Monthly Costs

The Nigerian Education Loan Fund (NELFUND) is grappling with a significant challenge as it has yet to recover any loans from beneficiaries, despite incurring a monthly upkeep bill of approximately ₦16 billion. Managing Director Akintunde Sawyerr revealed this concerning situation during an interview with ARISE NEWS.

Sawyerr emphasized the urgency for the Federal Government to explore alternative funding sources to ensure the sustainability of the scheme, which has been operational for over two years. He expressed concerns about how to maintain the program's financial obligations without incoming loan recoveries.

“The President is keen on finding innovative ways to fund education,” Sawyerr stated. “We’re currently facing a monthly bill of ₦16 billion, and without recoveries, the question remains: how do we keep this going?”

The government is considering the use of recovered proceeds from crime to support education, redirecting funds to benefit young Nigerians impacted by the misappropriation of public resources. However, Sawyerr clarified that this proposal does not aim to encourage plea bargaining for those accused of corruption.

He noted that while the initiative could aid in addressing educational neglect, NELFUND cannot rely solely on proceeds of crime for long-term sustainability. The law establishing NELFUND allows for charitable donations and investments to diversify funding sources.

Sawyerr highlighted the growing interest from the private sector in NELFUND, emphasizing its potential impact on employment and socio-economic development. “This program must be sustainable,” he said, stressing the need for political will and public participation.

As NELFUND seeks to navigate its funding challenges, the focus remains on innovative solutions that can support education in Nigeria without compromising ethical standards. The urgency of the situation calls for immediate action to secure the future of the loan scheme.