Senator Proposes 5 Years NELFUND Loan Repayment Plan, Pushes for Major Reforms

The Nigerian Education Loan Fund (NELFUND) may soon witness significant reforms as a senator has called for changes to the law governing the student loan program The proposal includes extending the repayment period from two years to five years while improving financial support for beneficiaries

According to the lawmaker, the current repayment timeline may place unnecessary pressure on graduates who are still searching for employment He also urged governments and private organisations to contribute more resources to ensure the long term sustainability of the scheme

With millions of Nigerian students already benefiting from NELFUND, the recommendations aim to make the initiative more practical, inclusive, and effective in supporting access to higher education

Senator Calls for Five Year NELFUND Repayment Period

A member of the Senate Committee on Tertiary Institutions and TETFund has urged the National Assembly to amend the NELFUND Act by extending the repayment period for student loans from two years to five years

He argued that many graduates complete the National Youth Service Corps without securing employment, making it difficult to begin loan repayment within the existing timeframe A longer repayment window, he said, would better reflect Nigeria’s current economic realities and improve compliance

Demand for Higher Student Stipends and Better Welfare Support

The senator also recommended an increase in the monthly allowance paid to beneficiaries, describing the current ₦20,000 stipend as insufficient to meet students’ daily expenses

Accommodation Should Be Included

Beyond tuition and upkeep allowances, he stressed the importance of addressing accommodation costs, noting that many students still struggle to pay for housing while pursuing their education

He maintained that a programme designed to support financially disadvantaged students should consider broader welfare needs to ensure beneficiaries can focus on their studies

States and Corporate Organisations Asked to Support NELFUND

To strengthen the programme’s sustainability, the lawmaker encouraged state governments and private sector organisations to make financial contributions to NELFUND

He observed that students in both federal and state-owned tertiary institutions benefit from the scheme, making it reasonable for sub national governments to play a more active role in funding and maintaining it

The senator also called for discussions with relevant stakeholders to develop long term strategies that would keep the program viable for future generations

Employment Opportunities Should Follow Graduation

Another major recommendation focused on employment for graduates who benefited from the loan scheme

The senator proposed stronger collaboration between NELFUND and government agencies responsible for job creation, arguing that beneficiaries should receive support in securing employment after completing their studies

Such cooperation, he said, would not only help graduates repay their loans but also improve the overall success of the program by linking educational access with meaningful career opportunities

Sustaining the Future of Nigeria’s Student Loan Scheme

With an estimated 1.6 million students already benefiting from NELFUND, the senator believes the program has become one of Nigeria’s most important education support initiatives

He urged relevant Senate committees and the NELFUND leadership to develop comprehensive sustainability plans and regularly review the scheme to ensure it continues serving students effectively in the years ahead