The Nigerian Education Loan Fund (NELFUND) is currently spending approximately ₦16 billion every month on upkeep allowances for student beneficiaries, its Managing Director, Akintunde Sawyerr, has disclosed.
Sawyerr made the revelation on Monday, August 31, 2026, during an interview on Arise TV while discussing the sustainability of the federal government’s student loan scheme. He explained that although the programme is more than two years old, the agency has not yet begun recovering any loans from beneficiaries.
“It’s a loan scheme; it’s two years plus old. We’re not getting any recoveries of the loans as of today,” Sawyerr said. “But how do you keep it going? We have a bill every month as of today of about ₦16 billion in upkeep alone. How do you maintain that?”
According to the NELFUND boss, the agency has so far received about 1.8 million applications, processed approximately 1.5 million, and provided support to around 850,000 beneficiaries.
Sawyerr noted that the Federal Government is exploring alternative funding sources to sustain the scheme. These include redirected funds from recovered proceeds of crime and other idle capital. He described the student loan programme as part of the government’s broader welfare interventions following the removal of the fuel subsidy.
He, however, cautioned that NELFUND cannot rely indefinitely on proceeds of crime. The law establishing the fund, he said, allows it to attract private investments, charitable donations, and generate income through its own investments.
Addressing allegations of financial misappropriation, Sawyerr firmly dismissed the claims, stating there was “no evidence” of any wrongdoing. He explained that institutional payments are made electronically and directly to verified beneficiary institutions, while upkeep allowances are transferred straight into students’ bank accounts. He cited a recent transfer of more than ₦1 billion to the University of Ibadan as an example of the transparent process.
Sawyerr also emphasised that the selection system is “completely agnostic,” meaning it does not discriminate based on gender, ethnicity, or personal connections. Applicants are required to provide a National Identification Number (NIN), JAMB registration number, proof of admission, and a bank account. The agency avoids cash transactions entirely.
While acknowledging that some students have experienced challenges with applications, approvals, or payments, he described such cases as rare and said the agency works to resolve them when they arise.
The monthly upkeep allowance for beneficiaries currently stands at ₦20,000. NELFUND has previously debunked circulating reports claiming the amount had been increased to ₦25,000 or that payments had been suspended.
The disclosure has drawn attention to the growing financial scale of the student loan scheme and the need for sustainable long-term funding as the number of beneficiaries continues to rise.
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