NELFUND Boss Dismisses Misappropriation Claims, Insists All Payments Traceable Electronically

Managing Director of NELFUND, Akintunde Sawyerr

NELFUND Boss Dismisses Misappropriation Claims, Insists All Payments Traceable Electronically

NELFUND MD says all transactions are electronically traceable from CBN to beneficiaries, defends transparency and fairness of student loan scheme

The Managing Director of the Nigerian Education Loan Fund (NELFUND) , Akintunde Sawyerr, has firmly dismissed allegations of financial misappropriation within the agency, insisting that every payment made under the student loan scheme leaves a digital trail and is fully traceable. Speaking on ARISE NEWS on Monday, Sawyerr rejected claims that the scheme operates without transparency, explaining that all disbursements are made electronically from the Central Bank of Nigeria (CBN) directly to tertiary institutions for tuition fees or to students’ bank accounts for upkeep allowances. He described allegations that NELFUND’s financial operations were opaque as potentially misleading, adding that such claims sounded “a little bit like mischief” to him.

Citing a recent example, Sawyerr said NELFUND transferred over N1 billion to the University of Ibadan to cover tuition for beneficiaries, while upkeep allowances were paid straight into students’ personal bank accounts. According to reports, the University of Ibadan received N1.655 billion to cover institutional levies for 8,110 students for the 2025/2026 academic session. Sawyerr explained, “The transfers of money are done electronically. It’s entirely traceable. The money leaves the Central Bank of Nigeria and goes either to the institution, the University of Ibadan, or in the case of upkeep, goes directly to the students in their bank accounts.” He questioned claims of opacity, asking: “So, where is the opacity in that? We transferred the funds directly to the institution and asked the institution to give the students access to classes. We’ve also paid upkeep to the students directly.”

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Addressing concerns over fairness in beneficiary selection, Sawyerr said NELFUND’s application process is fully electronic and designed to eliminate favouritism, ethnic considerations, and the influence of personal connections. He stated, “We receive applications electronically. The system doesn’t recognise whether you’re male, female, whether you’re Igbo, Hausa, Yoruba, Fulani, Ibibio, or Ogoja.” He explained that eligibility is determined by basic requirements including a National Identification Number (NIN) , JAMB registration number, admission details, and a bank account, adding: “The system doesn’t care whether you’re friends with the Managing Director or in-laws with the Executive Director. It doesn’t care.”

Sawyerr also disclosed that NELFUND currently faces a monthly upkeep bill of about N16 billion, even as loan recoveries from beneficiaries have yet to commence. He confirmed the Federal Government was exploring alternative ways of funding the scheme, including the use of forfeited proceeds of corruption and unclaimed dividends, to ensure that more students can access education. He said, “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.”

NELFUND has disbursed N154.37 billion to support 788,947 students across 262 public tertiary institutions nationwide as of December 2025. The disbursement included over N82 billion paid directly to institutions for tuition and compulsory fees, and more than N72 billion released as monthly upkeep allowances, with beneficiaries receiving a N20,000 monthly allowance. The fund had received over 1.26 million applications, with 62.3 per cent successfully processed and disbursed. Sawyerr noted that all payments are made through a fully digitised platform to guarantee transparency, tracking, verification and accountability. The fund publishes its figures daily and maintains a complete electronic trail of all payments.

Sawyerr acknowledged that some students have experienced challenges with applications, approvals and payments but described such cases as rare, adding that the agency addresses them when they arise. On the sustainability of the scheme, he said NELFUND could not depend indefinitely on recovered proceeds of crime, stressing that its enabling law permits the fund to attract private investment, charitable donations and generate income through investments. The loans are interest-free, and repayment commences two years after completion of the National Youth Service Corps (NYSC) and upon securing employment, with only 10 per cent of monthly income deducted. Sawyerr linked the creation of NELFUND to President Bola Tinubu’s removal of fuel subsidy, saying the government was redirecting money previously spent on a few into welfare programmes for Nigerians. He reiterated, “There is no evidence of any financial misappropriation by NELFUND. The reality of it is that in order for people to take a loan, there has to be some capital they can draw on.”