By Opeyemi Adelakun
The Nigerian Education Loan Fund has disclosed that it is yet to recover any student loans from beneficiaries, despite the scheme’s monthly upkeep obligation rising to about ₦16bn.
NELFUND Managing Director, Akintunde Sawyerr, disclosed this on Monday during an interview with ARISE NEWS, saying the Federal Government was considering alternative funding options to keep the student loan scheme running.
Sawyerr noted that although the programme had been in operation for more than two years, loan repayments had not commenced.
He said the growing cost of maintaining the scheme had made sustainable funding a major concern.
According to him, the government was considering ways of redirecting funds that could otherwise remain unused towards supporting education.
Sawyerr also backed discussions around using recovered proceeds of crime to support young Nigerians, particularly those seeking access to education.
He, however, stressed that the proposal should not be interpreted as an attempt to encourage plea bargaining with individuals accused of stealing public funds.
He explained that recovered proceeds would only become relevant after cases involving the misappropriation of public funds had been concluded and the recovered money had been legally warehoused.
Sawyerr argued that young Nigerians seeking education could be regarded among the victims of the diversion of public resources.
He said directing some recovered funds towards education could therefore help address the consequences of such financial crimes.
NELFUND cannot depend on recovered funds
The NELFUND boss, however, acknowledged that proceeds of crime could not provide a permanent solution to the agency’s funding needs.
He explained that the law establishing NELFUND allows the agency to obtain charitable donations, attract investments and invest in ventures capable of generating income.
Sawyerr said the use of recovered proceeds of crime should therefore be viewed as a short-term intervention rather than a permanent funding model.
He expressed optimism that the volume of proceeds of crime would eventually decline as anti-corruption efforts improve.
The NELFUND chief added that the agency was already attracting interest from private-sector investors who recognised the potential impact of student financing on employment, crime reduction and Nigeria’s wider socio-economic development.
He stressed that the long-term success of the scheme would require sustained political commitment as well as contributions from Nigerians and private-sector stakeholders.
Sawyerr added that adequate and sustainable funding remained critical to ensuring that the programme continues to provide educational opportunities for young Nigerians.
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