NELFUND's Monthly Running Cost of ₦16bn Uncovered Amidst Zero Loan Repayments

The Nigerian Education Loan Fund (NELFUND) is currently facing significant financial challenges, with its Managing Director, Akintunde Sawyerr, revealing that the scheme has yet to recover any loans from beneficiaries. This comes as the fund incurs a substantial monthly operational cost of approximately ₦16 billion.

Speaking during an interview with ARISE NEWS on Monday, Sawyerr highlighted the Federal Government's active exploration of novel funding mechanisms to ensure the long-term viability of the student loan initiative. He pointed out that despite being operational for over two years, the scheme has not seen any loan repayments, prompting concerns about how its escalating financial commitments will be met.

Sawyerr stated, "I think the President, in his magnanimity, is looking for ingenious ways to be able to continue to fund education. It’s a loan scheme. It’s two years plus old. We’re not getting any recoveries of the loans as of today. 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? How do you keep that going?"

He further explained, "I think what the President is doing is looking for different ways of re-channeling, redirecting funds to a cause that is indeed very worthy from capital that’s probably sitting idle."

Sawyerr also disclosed that the Federal Government is considering utilizing recovered illicit funds and other assets to bolster the education sector, arguing that such resources could be strategically directed towards empowering young Nigerians.

"Finally, you talked about corridors—sharing corridors of proceeds of crime. Again, it is those corridors, those proceeds of crime, that in many ways have led to the neglect in education. We must be able to find the link to make our country better,” he asserted.

To prevent misinterpretation, Sawyerr clarified that this proposal does not aim to encourage plea bargaining or offer protection to individuals implicated in the misappropriation of public funds. "I don’t believe that what is intended here is to approach those who have… The President did not say, ‘Go and plea bargain or set up a plea bargain arrangement with those who have misappropriated Nigeria’s funds and then give it to NELFUND.’ He didn’t say that. The issues of misappropriated funds and proceeds of crime are entirely separate—completely separate to NELFUND," Sawyerr emphasized.

He elaborated that the primary objective of the proposal is to channel recovered funds towards young Nigerians who have been adversely affected by the diversion of national resources.

"What has happened is that people have been found wanting in terms of fund acquisition, looting—as is the word that is commonly used—when those cases are settled, and the liquid elements of that are warehoused somewhere, the President is asking a very important question: ‘Why can’t we use it for the victims who suffered for some of these crimes?’ he explained.

Sawyerr added, "And the victims tend to be the young; they tend to be those who want to get an education. So, he’s looking—he’s very focused, President Tinubu is very focused on trying to help those at the bottom of the ladder who never have really benefited from anything, but in fact, have suffered from the misappropriation of Nigeria’s wealth. I think this is pretty interesting, what he’s trying to do, and I’m in full support of it. The devil’s in the detail, of course, but I’m in full support of it.”

Regarding the scheme's endurance, Sawyerr acknowledged that NELFUND cannot perpetually depend on proceeds of crime as a funding source. He outlined that the legislation establishing the agency empowers it to solicit charitable contributions, attract investments, and engage in ventures designed to yield returns.

"Moving on to the question that was asked earlier about long-term sustainability: the law that set up NELFUND allows us to go out and seek charitable donations, it allows those who want to invest in NELFUND to invest, and it allows NELFUND itself to invest in elements that are going to bring a return and income. What we’re seeing, I believe, today is short-term interventions,” Sawyerr stated.

He continued, "We’re hoping the proceeds of crime in this country will reduce as the anti-corruption drive goes on in other parts of government, so we can’t possibly rely on proceeds of crime in the long term. But if you look at the law that set this up, it does allow us to source funds from other places.”

Sawyerr concluded by noting the significant interest NELFUND is already garnering from the private sector, attributing this to its potential positive influence on employment generation and Nigeria's broader socio-economic advancement. "And I can tell you today that there’s a lot of interest already from the private sector—from those who recognize how this can impact the economy, how this can impact employment, how this can impact crime, how this can impact banditry and insurgency. Those who recognize the benefit to the socio-political growth of Nigeria know that this must be sustain[ed]," he affirmed.