Nigerian Students Loan Conundrum: Who’s Being Left Behind?

Yemi Olakitan

For years, Nigerian students have faced significant obstacles in pursuing tertiary education due to financial constraints. Many have been forced to abandon their dreams of higher education altogether. However, President Bola Ahmed Tinubu has taken a bold step towards changing this narrative with the establishment of the Nigerian Education Loan Fund (NEL FUND).

NELFUND is designed to provide financial support to students, ensuring that no Nigerian is denied access to higher education due to poverty. The program has generated significant interest, particularly among students from the northern states. Data released by NELFUND on August 30, 2024, revealed varying levels of participation across Nigeria’s 36 states and the Federal Capital Territory (FCT), with the north showing the highest level of interest.

Many have accused the agency of favouritism, neglecting universities in the Southeast and Southwest while focusing more on the northern universities. What more? Private universities are not included.

A closer look at the data reveals a concerning trend: while northern states like Kano, Borno, and Benue are prominent beneficiaries, southern economic hubs like Lagos and Rivers lag behind.

The Nigerian government’s decision to exclude students from private tertiary institutions from the loan scheme has also sparked intense debate. According to federal lawmaker Isiaka Gboyega, the government’s rationale is that those who can afford to send their children to private institutions are not in dire need of financial assistance. However, this assumption oversimplifies the complexities of financial struggles faced by many families.

Some parents have come forward to share their stories, revealing that they enrolled their children in private universities not because they are wealthy, but because of the deplorable state of public tertiary education. The lack of research tools, housing, and perpetual strike actions by public university lecturers have made private institutions a necessity for many

One parent’s poignant statement resonates deeply: “The fact that my child attends a private university doesn’t mean I’m rich. It’s just about sacrifice.” This parent, like many others, has had to borrow money from banks to pay tuition fees, all while making immense sacrifices for their child’s education.

It’s essential to recognize that the government’s failure to manage public institutions effectively has led to this situation. Rather than excluding private university students from the loan scheme, the government should focus on addressing the root causes of the problem. By doing so, they can create a more inclusive and equitable education system that supports all students, regardless of their background or financial situation.

Dr. Fred Femi Akinfala, NELFUND’s Executive Director of Finance and Administration, has emphasized the agency’s focus on low-income individuals, aiming to reduce poverty and promote inclusive economic development. However, the data suggests a mismatch between registration and application numbers, particularly in the Southeast. For instance, Enugu recorded 4,133 registered students, but only 2,247 applied. Similar gaps are observed in Lagos, Rivers, and Bayelsa states.

In an exclusive Interview with specific students in the southwest, it was discovered that students at the Lagos State University, LASU applied but have not received the loans. Speaking with Daniel Opemipo, a medical student at LASU, he said, ” I have applied for the student loan but I have not received the loan. Each time I checked the website I discovered that my application status was listed as pending. When I found out from my colleagues who have also applied. They narrated the same experience.”

In another Interview with a student from Obafemi Awolowo University, Babatunde Oluwatosin, he asked, “have you ever seen anyone who has received that loan because I haven’t seen one. I applied but it says pending. Here at Obafemi Awolowo University, I have not met anyone who is a beneficiary and many of us have applied,” he said.

This raises questions about the effectiveness of NELFUND’s outreach and support for students in these regions. Are there systemic barriers preventing students from accessing these loans? Is NELFUND doing enough to address the unique challenges faced by students in the Southwest? As NELFUND continues to disburse funds, it’s essential to address these disparities and ensure that all students, regardless of their location or background, have equal access to educational opportunities including students from private Universities..

The NELFUND data on student loan registration by state of origin and institution reveals how regional dynamics and socioeconomic factors influence student interest and participation in the loan program.

It is regrettable that President Bola Tinubu signed the Student Loans (Access to Higher Education) (Repeal and Re-Enactment) Bill 2024 into law and students at private institutions are noticeably excluded from the Nigerian Education Loan Fund, or NELFUND.

Professor Solomon Adebola, the vice-chancellor of the privately run Adeleke University in Osun State in south-western Nigeria, said private universities have been grossly marginalized in the Nigerian educational system. He said the fact that there are 147 private universities in the country, with the number still growing, shows the demand for and the relevance of private higher education.

“Unfortunately, the government that created us does not seem to understand why we are in the system. First, look at Tetfund, funded through the tax of all Nigerians. It only finances public tertiary institutions and neglects private institutions.”

“Go and look at the schools in the private sector. Some are struggling to exist and there is a limit to which they can rely on only tuition fees. And now, with the student loan programme, the government has edged us out again. It’s strange and I don’t know why the government is doing this to us,” Adebola told University World News.

He said there is no reason to believe all students in private universities are from rich homes, citing that, at his university, the founder placed about a quarter of the student population on full scholarships because they cannot pay.

“So, it’s wrong for the government to think all private university students have rich parents. They, too, deserve to have access to the student loan scheme. The idea of pushing them aside will make us believe we are not part of the country,” Adebola said.

Many Tertiary education stakeholders across the country have called for the inclusion of private higher education in the student loan programme to promote equal opportunities for all Nigerian students. Among the prominent voices was that of former president Olusegun Obasanjo, who urged the government to listen to the calls and take action.

However, NELFUND Managing director Akintunde Sawyerr explained at a recent meeting with education stakeholders that the scheme aims to help underprivileged students.

“Though President Bola Tinubu believes the fund is for all Nigerians, some factors contributed to not considering including students in private institutions as beneficiaries for now. We must understand that the scheme is a means to redistribute wealth to balance society. We have to also know that it is a social programme meant to help in the education of the poor. It is a social scheme meant to help the people at the lower cadre,” Sawyerr said.

“It is generally taken that, if your child attends a private university, you may not be seen as poor. Apart from this, if the tuition fee in a private university is, say, NGN2 million [about US$1,447], you can imagine how many students in a public university such an amount can take care of. Yes, parents of students in private schools also pay taxes, but we have to consider the impact of giving as many people as possible access to tertiary education,” Sawyerr said.

However, if Nigeria must succeed in the students loan program, she must learn from the western nations who have done before her.

According to various reports, students attending private universities in the United States of America can apply for various types of loans to help fund their education. They can apply for Federal Student Loans, Direct Subsidized Loans, Need-based loans with a fixed interest rate. They can also apply for Direct Unsubsidized Loans which afe Non-need-based loans with a fixed interest rate. They can apply for Direct PLUS Loans For graduate students or parents of undergraduate students.

Students in American universities also have access to what is referred to as Private Student Loans, offered by banks, credit unions, and other financial institutions. There are other loans available to American students provided by non-traditional lenders, such as online lenders, including Institutional Aids. Some private universities offer their own loan programs or financing options. This is apart from various scholarship programs.

In the United Kingdom, student loans are generally available to students attending private universities, but there are some conditions and restrictions.

According to reports, to be eligible for a student loan, the private university must be a “recognised body” or have “listed status” with the UK government. This means that the university must meet certain standards and criteria set by the government.

Students attending private universities in the UK can apply for loans from Student Finance England, Student Finance Wales, Student Finance Northern Ireland, or the Student Awards Agency Scotland (SAAS), depending on their domicile.

Now, from the example of the developed countries mentioned above, we can see that student loans are available to private Universities or indeed anyone who desires it. People seek education loans for various reasons and should not be deprived.

This is a pointer to the fact that the Nigerian Student Loan is still at its embryonic stages and the Federal Government needs to fully developed it to a very robust stage. A student loan program that will be available to all irrespective of the university or region they belong to is the most popular.