NELFUND: The journey so far

By Femi Akinfala

As a parent and former academic, I share the joy of countless Nigerian parents and students who have benefited from the Nigerian Education Loan Fund (NELFUND). My extensive experience as a lecturer, which included roles such as a course advisor, participation in the Dean of Student Affairs scholarship committee, and membership of the Senate of the University of Lagos, the highest decision-making body—afforded me invaluable insights into the challenges faced by students from various backgrounds, particularly those from low-income families. It has been gratifying to witness NELFUND, where I currently serve as Executive Director of Finance and Administration, make a significant impact on the lives of these students.

In addition to my academic contributions, I have also served in significant leadership roles, including as a Director at the Federal Inland Revenue Service (FIRS) and later as an Executive Director at the Police Trust Fund. These roles further strengthened my commitment to public service and my ability to impact critical sectors.

Reflecting on NELFUND’s journey, I am proud to say it has defied sceptics. In a remarkably short time, the agency has optimised its processes and consistently fulfilled its mandate. The successful implementation, transparency, and growing public support for the student loan scheme have validated its purpose and confirmed the need for its creation. NELFUND is now a trusted resource for students across Nigeria, helping to transform their aspirations into reality, regardless of their background.

The report below analyses the Nigeria Education Loan Fund (NELFUND) in Nigeria, focusing on institutional participation, loan applications, and loan disbursements from its inception (April – Sept. 2024). The analysis highlights significant regional disparities in loan application and disbursement patterns, with the North Central zone leading. Followed closely by the South West, the South East recorded the lowest figures in both categories. The distribution of public universities, polytechnics, and colleges of education underscores a preference for university-level education, which has the highest number, followed closely by polytechnics and colleges of education. Additionally, the report reveals a notable gender disparity in loan distribution, with 83% of loans awarded to male applicants, raising concerns about inequality in access to educational funding. The data also indicates a steady rise in loan disbursements, reflecting increasing demand and responsiveness within the funding system.

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PUBLIC UNIVERSITIES, POLYTECHNICS, AND COLLEGES OF EDUCATION ENLISTED ACROSS NIGERIA’S GEOPOLITICAL ZONES.

PUBLIC UNIVERSITIES ENLISTED
TOTAL NUMBER OF PUBLIC UNIVERSITIES ENLISTED: 116
Universities are the most prevalent institutions across Nigeria, forming the backbone of higher education. The South West zone leads with 24 public universities, in contrast, the North East has only 14.

PUBLIC POLYTECHNICS ENLISTED
TOTAL NUMBER OF PUBLIC POLYTECHNICS ENLISTED: 73
Polytechnics in the South West has a strong presence, totalling 19. Conversely, the South East has the fewest polytechnics at 9.

PUBLIC COLLEGES OF EDUCATION ENLISTED
TOTAL NUMBER OF PUBLIC COLLEGES OF EDUCATION ENLISTED: 68
Public colleges of education, which play a vital role in teacher training, are most prevalent in the North East, with 15 institutions. Conversely, the South East has the lowest number of education colleges at 5.

North West Zone
Universities: 21
Polytechnics: 10
Colleges of Education: 12
The North West shows a balanced distribution, with universities being the most prevalent.

North East Zone
Universities: 14
Polytechnics: 11
Colleges of Education: 15
In contrast, the North East has the highest number of colleges of education, although the number of universities is relatively low.

North Central Zone
Universities: 19
Polytechnics: 11
Colleges of Education: 14
The North Central Zone exhibits a balance among the three types of institutions, with universities leading slightly.

South East Zone
Universities: 16
Polytechnics: 9
Colleges of Education: 5
The South East has a strong university presence, but the significantly lower number of colleges of education.

South South Zone
Universities: 22
Polytechnics: 13
Colleges of Education: 7
Similar to the South East, the South South zone has a high number of universities, with fewer colleges of education.

South West Zone
Universities: 24
Polytechnics: 19
Colleges of Education: 15
The South West leads in the total number of institutions across all types, with a strong presence of universities and polytechnics.

2. TOTAL APPLICATIONS ACROSS NIGERIA’S GEOPOLITICAL ZONES

Geopolitical Zone
Applications

North Central: 702,845
South West: 543,120
South South: 413,698
North West: 389,715
South East: 328,504
North East: 267,812

Figure 4 shows the number of student applications by region.

TOTAL NUMBER OF APPLICATIONS: 2,645,694
North Central recorded the highest number of applications, with a total of 702,845. South West followed with 543,120. South South registered 413,698 applications, placing it in the middle of the pack. North West recorded a closely similar figure, with 389,715. South East reported 328,504. North East had the fewest applications, with 267,812.

3. TOTAL PUBLIC INSTITUTIONS ENLISTED ACROSS NIGERIA’S SIX GEOPOLITICAL ZONES
TOTAL NUMBER OF INSTITUTIONS ENLISTED: 257
TOTAL NUMBER OF STUDENTS ENLISTED: 2,645,694

Geopolitical Zone
Applications

North Central: 702,845
South West: 543,120
South South: 413,698
North West: 389,715
South East: 328,504
North East: 267,812

South West leads with 58 institutions, which emerges the highest compared to other regions.
North Central follows with 50 institutions, highlighting the region’s commitment to expanding educational access, particularly in states like Abuja. Both South South and North West have 46 institutions each, showing steady growth as institutions increasingly recognise the benefits of financial programs. North East has 42 institutions, demonstrating resilience in the face of socio-economic challenges, with potential for increased participation in NELFUND. South East has the fewest with 37 institutions, suggesting a need for targeted outreach to encourage more schools to access funding opportunities.

TREND IN LOAN DISBURSEMENT (1ST TO 4TH DISBURSEMENT)

BATCH
AMOUNT

1st Disbursement: ₦1,554,473,920.40
2nd Disbursement: ₦4,313,786,960.40
3rd Disbursement: ₦8,672,672,677.60
4th Disbursement: ₦11,002,386,789.10

TOTAL: ₦25,543,320,347.50

1st to 2nd Disbursement: An increase of ₦2,759,313,040
2nd to 3rd Disbursement: An increase of ₦4,358,885,717.20
3rd to 4th Disbursement: An increase of ₦2,329,714,111.50

Exponential Growth in Later Disbursements:
The amount disbursed doubles between the 2nd and 3rd disbursements, indicating a significant surge in loan demand or an increase in available funds. The 4th disbursement totals ₦11,002,386,789.10, which is over ten times the initial disbursement amount.

5. LOAN DISTRIBUTION ACCORDING TO GENDER

GENDER
VALUE
PERCENTAGE

MALE: ₦7,407,562,900.775 (83%)
FEMALE: ₦18,135,757,446.73 (17%)

Males: 29% (₦7,407,562,900.775) of the total loans were disbursed to males.
Females: 71% (₦18,135,757,446.73) of the total loans were disbursed to females.

Significant Gender Gap:
There is a clear disparity in loan distribution, with females receiving a considerably larger share. The 71% to 29% split indicates a 42% (₦10,728,194,545.95) gap, suggesting that females and males benefit disproportionately from loan disbursements.

Potential Factors Contributing to Disparity:
Higher application rates for loans among females.
Enrolment ratios in institutions, with more females than males.

Since its inception, NELFUND has partnered with 257 tertiary institutions, including 112 public universities, 71 polytechnics, and 74 colleges nationwide. To date, we have collected data on 4,458,389 students, including 3,542,365 university students, 702,045 polytechnic students, and 732,458 from education colleges. Moreover, we have disbursed over N6.4