A total of ₦50 billion has been set aside for student loans by the President Bola Tinubu-led administration in the 2025 Budget, presented to a joint session of the National Assembly.
The ₦50 billion, which will be managed by the Nigerian Education Loan Fund (NELFUND), falls under the Ministry of Education’s ₦3.54 trillion budgetary allocation for the 2025 fiscal year.
Key allocations within the Ministry of Education’s budget, as analyzed by BudgetIT, a non-profit organization, and reported by Edubase Nigeria, show that a service-wide vote of ₦50 billion is allocated for the student loan scheme. Additionally, ₦950 billion is allocated to the Tertiary Education Trust Fund (TETFUND), among other expenditures.
While presenting the ₦49.7 trillion budget for 2025 to lawmakers on Wednesday, December 18, 2024, President Tinubu stated that his government is making “record investments in education, health, and social services” because Nigerians are the country’s greatest assets.
NELFUND, which oversees the management and disbursement of interest-free student loans to Nigerian students in public higher institutions, officially launched in mid-2024.
Although the education loan policy was enacted in June 2023 and initially scheduled to commence in October of that year, its implementation was postponed to April 2024 to accommodate several amendments.
The NELFUND portal received its first batch of applications in May 2024, with a ceremonial launch held at the State House, Abuja, on July 17, 2024.
During the presentation of the 2025 budget, Tinubu revealed, “Our administration has so far disbursed ₦34 billion to over 300,000 students via the Nigeria Education Loan Fund (NELFUND).”
In November, Nigeria’s student loan agency, through a tweet, disclosed that over ₦11 billion had been disbursed to various institutions nationwide. The agency continues to update its figures weekly and monthly as new applications are processed.
Akintunde Sawyerr, the Managing Director/CEO of NELFUND, recently suggested that the NELFUND may prioritize students enrolled in skill-based programs in the future.
Christened “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” the 2025 budget allocates the third-highest funding to the Ministry of Education (₦3.54 trillion), after Defence and Security (₦4.91 trillion) and Infrastructure (₦4.06 trillion).
Conclusion
The 2025 budget demonstrates a significant commitment by the Tinubu administration to addressing education funding challenges in Nigeria.
By allocating ₦50 billion to student loans and disbursing ₦34 billion to over 300,000 students so far, the government seeks to improve access to higher education.
However, prioritizing skill-based programs could further align the initiative with national economic goals, fostering a skilled workforce.
The ₦3.54 trillion allocation to education underscores the administration’s broader focus on human capital development, though effective implementation and continuous evaluation remain crucial for sustainable impact.
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