NELFUND Blames Poor Data, Weak IT Systems for Student Loan Delays

The Managing Director of the Nigerian Education Loan Fund, Akintunde Sawyerr, has attributed the delay in the disbursement of student loans to weak information technology systems and inaccurate data submitted by tertiary institutions.

Speaking during an interview, Sawyerr explained that the loan scheme is largely automated and relies heavily on data provided by schools regarding their students. He noted that incomplete or incorrect information often disrupts the application process.
According to him, students are unable to successfully apply for loans when their institutions submit inaccurate or incomplete records, as the system is designed to reject faulty data.
He further stated that differences in IT capacity among institutions have complicated the integration process. Each school operates its own systems and procedures, making it difficult to align them with the central loan platform.
Sawyerr added that some institutions face challenges in promptly confirming receipt of funds due to limited capacity to monitor their accounts, leading to communication gaps and additional delays.
He also identified varying academic calendars across universities and other tertiary institutions as another factor affecting smooth loan disbursement. He explained that the timing of payments depends on when applications are processed rather than individual school schedules.
Addressing reports that over 11,000 students experienced delays in receiving upkeep allowances earlier in the year, Sawyerr said the issue was caused by multiple factors. These include incorrect bank account details, mismatched names, and cases where applicants used another person’s Bank Verification Number (BVN).
He clarified that the N20,000 monthly upkeep allowance is separate from the main student loan and is not рассчитated for a full 12-month period. Instead, it is based on the remaining duration of the academic session at the time of approval.
Despite concerns about rising living costs, Sawyerr stated that there are currently no plans to increase the allowance, noting that frequent adjustments may not be sustainable under current economic conditions.
On transparency, he emphasized that all processes within the scheme are handled electronically to ensure accountability. Funds are transferred directly from the Central Bank of Nigeria to beneficiary institutions, ensuring a clear audit trail.
He added that institutions are required to issue acknowledgement receipts for funds received, which are made publicly available for verification by Nigerians.
Sawyerr also explained that the student loan is interest-free, and repayment will only begin two years after beneficiaries complete the National Youth Service Corps programme.
Repayment, he said, will be facilitated through employers, who will deduct 10 percent of beneficiaries’ salaries until the loan is fully repaid.
To enhance the efficiency of the programme, Sawyerr urged tertiary institutions to upgrade their IT infrastructure.