FG Gives Out N80 Billion Loans to Students – NELFUND
FG Gives Out N80 Billion Loans to Students – NELFUND
Managing Director of Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, said that the federal government has given out over N80 billion to Nigerian institutions towards the students’ loans.
This was as the Rural Electrification Agency (REA) has signed a Memorandum of Understanding (MoU) with the Budget Office of the Federation, Infrastructure Corporation of Nigeria (InfraCorp), and the Ministry of Finance Incorporated (MOFI), to mark the official launch of the National Public Sector Solarisation Initiative (NPSSI).
Also, the federal government yesterday said it has paid federal workers the second tranche of the outstanding N35,000 wage award arrears.
Sawyer revealed this at a two-day Renewed Hope Student Leaders Engagement, organised by the Office of the Senior Special Assistant to the President on Students Engagement in partnership with the Rivers State Government, at the University of Port Harcourt, yesterday.
He stated that the fund has received over 745,000 applications, while over 400,000 have benefitted. He emphasised that the fund is very keen with transparency to build trust for the government and ensure sustainability.
Sawyer said, “So far we have over 745,000 Nigerians who have applied for this loan, out of this number, we have over 400,000 students who are benefiting from this loan. They have their school fees paid at tertiary level and some of them who have applied for upkeep are receiving N20,000 per month, per session.
“So far we have disbursed over N80 billion to Nigerian institutions and Nigerians who are benefiting from the loan. We are receiving applications. In the last 24 hours we had 2,700 applications. We are processing them.”
He further stated that “The original law was repealed and re-enacted and one of the key components was that this scheme can be funded with non-governmental money. In other words, people who want to contribute to the fund from outside government, whether they are philanthropists, general donors, NGOs, people with special interest in education, can bring their money into that fund for it to be dedicated to the provision of loans or even grants, if they want, to the students.”
The NELFUND Chief Executive Officer informed that there are two loans that applicants can apply for, institutional loan and the student upkeep loan. “The school fees element goes direct to the school on their behalf. Neither of these loans are with interest, in other words, they are interest free.”
Sawyer added that the application is every year, though registration is once in the event that such students leave the country or eventuality of death.
In his address, Senior Special Assistant to the President on Students Engagement, Asefon Dayo, revealed that the event is a deliberate and strategic initiative to strengthen the bridge between government and students, close communication gaps, and create a vibrant platform where campus leaders can interact directly with policymakers and key stakeholders in the education and youth sector.
“Our mission is clear, to engage student leaders meaningfully, inform them about the far-reaching reforms of President Bola Ahmed Tinubu in education and youth development, and hear from them directly. By doing this, we work towards building a more inclusive, impactful, and prosperous future for Nigerian students,” he said.
He mentioned that the launch of the Nigerian Education Loan Fund (NELFUND) was to make education accessible and affordable, noting that the scheme has significantly reduced the number of students dropping out of tertiary institutions every year.
Dayo also stated that the President has approved the allocation of Funds to 15 school bot college of Education, polytechnic and University to create innovation hubs and entrepreneurship centre, to provide core labs/workstation to cover electronic Lab, 3D printing Lab Leser Technology Lab, production Design lab, Robotics and coding, Artificial intelligence, among others.
He added that initiatives by the present administration include; increased funding for tertiary institutions, total attention to digital and vocational skills training for young Nigerians, renewable energy projects lighting up our campuses, rehabilitation of medical schools, introduction of the Students Industrial Work Experience, grant provided for both financial support and practical exposure to students.
The SSA on Student Engagement to the president tasked the students to make good use of the opportunity the event has presented to them, share the knowledge, inspire peers, and ensure every student regardless of background or location benefits from these opportunities.
He also thanked the Sole Administrator of Rivers State, Vice Admiral Ibok-Ete Ibas (rtd), Sole Administrator of Rivers State, for his unwavering support that made this event possible.
One of the participants, Noble Baridianen, of the Department of Health Promotion, Environmental and Safety Education, University of Port Harcourt (UNIPORT), described the event as amazing, stating that a lot of students were not aware of most of the initiatives that the federal government has made available for the students.
He called for conscious awareness to enable more of the students become aware of the initiatives and to structures that will sustain the initiatives.
A statement by REA in Abuja yesterday described the N100 billion initiative as a flagship, government-led programme designed to accelerate the deployment of distributed solar energy solutions across Nigeria’s public sector institutions, including schools, hospitals, security posts, government offices, among others.
At the core of the joint agreement which took place at the Budget Office of the Federation, the REA said, is the urgent need to power critical infrastructure with clean, reliable energy, while moving away from diesel dependence and reducing the public sector’s carbon footprint.
The signing ceremony for the NPSSI, it said, not only strengthens the alliance and collaboration between the government and the private sector in the energy sector but also aims to advance the nation’s drive for localised renewable energy infrastructure and reverse unsustainable energy financing mechanisms.
Managing Director and Chief Executive of the REA, Abba Aliyu, noted that the NPSSI was part of a broader strategy to position Nigeria as the renewable energy hub of Africa, while promoting innovation, local manufacturing, and sustainability in energy infrastructure financing in Nigeria.
“What makes this truly remarkable is the collaborative spirit behind it. We are witnessing a new era of inter-agency synergy, driven by creativity, fiscal responsibility, and a shared determination to reduce the cost of governance while meeting our national energy transition goals,” Aliyu added.
While providing an overview of the initiative, he explained that the government-led programme was designed to accelerate the deployment of distributed solar energy solutions across Nigeria’s public sector institutions, including schools, hospitals, security posts, government offices, and more.
“At its core, this initiative was birthed from a strategic national priority: the urgent need to power critical infrastructure with clean, reliable energy, while moving away from diesel dependence and reducing the public sector’s carbon footprint,” he added.
According to him, Phase 0 of the NPSSI is fully funded by the federal government to the tune of N100 billion, while subsequent phases will harness innovative and blended financing models, leveraging private capital from both local and international long-term funders, all under structures that eliminate sovereign guarantees and contingent liabilities.
Also speaking at the event, Director General of the Budget Office of the Federation, Dr. Tanimu Yakubu, emphasised the significance of the initiative in addressing Nigeria’s long-standing energy gap and strengthening the fiscal efficiency of public sector operations.
He explained that the ‘solarisation’ initiative had become a necessity, noting that the NPSSI will provide an added opportunity to optimise the demonstrated ability of public institutions to pay for clean, sustainable energy, which he said the capital market needs to ensure bankability.
Besides, the MD/CEO of InfraCorp, Dr. Lazarus Angbazo, hailed the initiative as a model for the future of infrastructure financing in Nigeria.
He explained that “for decades, the sector has relied solely on public financing”, explaining that “while government is indispensable, government is not enough to solve the energy challenge”, hence the need to optimise the federal government’s NPSSI as a pathway to drive localisation of energy capability and supply chain integration.
In his remarks, the MD of MOFI, Dr. Armstrong Takang, who was represented by Dr. Femi Ogunseinde, MOFI’s Chief Investment Officer, explained that Nigeria’s energy mix has historically been unfairly weighed on fossil fuel, which is expensive to sustain.
“We must not underestimate the importance of creating business models that drive down the cost of power while expanding access. We must now chart a new course, one that de-emphasises the use of sovereign guarantees, domestically anchored and investment-ready,” he stressed.
The REA) is the implementing agency of the federal government under the Ministry of Power tasked with the electrification of unserved and underserved communities to catalyse economic growth and improve quality of life for Nigerians.
Office of the Accountant General of the Federation (OAGF) disclosed the payment of the federal workers in a statement issued by the Director, Press and Public Relations, Mr. Bawa Mokwa.
The office stated that the federal government had earlier paid one month out of the initial five months arrears, adding that with the payment of the second tranche, there remains three tranches to exhaust the wage award arrears.
The OAGF said contrary to insinuations in some quarters, the federal government had not reneged on payment of the wage award arrears.
Bawa reassured that the federal government will continue to pay the wage award in instalments of N35,000 per month until the outstanding arrears is exhausted.
Earlier in April, the OAGF announced that government was ready to disburse outstanding five-month- N35,000 wage award arrears to federal government workers.
The office explained that the federal government had earlier paid five months wage award to federal government employees in instalments, adding that the outstanding arrears would be paid in instalments of N35,000 per month for five months.
It noted that the first instalment of the outstanding wage award arrears would be paid after the April 2025 salary.
Bawa said, “The wage award arrears would not be paid with the April 2025 salary; it will come immediately after the salary is paid.”
The office further reiterated the federal government’s resolve to fully implement all policies and agreements regarding staff remuneration and welfare to enhance productivity and efficiency.
