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FG Allocates N175.13 Million To NELFUND In 2025 Budget -

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News

FG Allocates N175.13 Million To NELFUND In 2025 Budget

FG Allocates N175.13 Million To NELFUND In 2025 Budget

The Federal Government, in its proposed N49.74 trillion 2025 budget, has allocated approximately N175.13 million to the Nigerian Education Loan Fund (NELFUND).

Established under the Student Loan Act, 2024, NELFUND is a crucial financial institution aimed at providing loans to eligible Nigerian students for higher education. This allocation forms part of the Federal Government’s final budget proposal for 2025, which details funding across various sectors.

-Breakdown of the NELFUND Allocation-

1. Salaries and Wages:
– N124.08 million has been designated for the salaries and wages of NELFUND employees. This amount is allocated for compensation across various government departments.

2. Allowances:
– N32.72 million is set aside for regular allowances, offering financial benefits beyond basic salaries.

3. Pension Contributions:
– N12.13 million is allocated for the Contributory Pension – Employers’ Contribution, ensuring employees have a secure source of income upon retirement.

4. Health Insurance:
– N6.20 million is earmarked for the National Health Insurance Scheme (NHIS) to provide health coverage for employees.

-Historical Milestones of NELFUND-

NELFUND was signed into law on April 3, 2024, by President Bola Ahmed Tinubu, representing a significant stride in advancing access to higher education and skill development for Nigerian students. Its primary goal is to offer financial support for tuition, fees, and living expenses at approved tertiary and vocational institutions within Nigeria.

The organization is managed by a board of directors, with representatives from key ministries and regulatory bodies such as the Federal Ministries of Finance and Education. The day-to-day operations are overseen by Akintunde Sawyerr, the Managing Director.

  -Plans and Achievements-

On January 1, 2025, during an interview on a TV  program, Akintunde Sawyerr outlined NELFUND’s plans for the year, including technological advancements to ensure efficient processing of applications. He revealed that the fund currently has 340,000 student loan applicants but aims to increase this to 1.8 million applicants within the next 12 to 18 months.

Additionally, in 2024, President Tinubu approved the release of N50 billion each* to NELFUND and the Nigerian Consumer Credit Corporation (CREDICORP), sourced from proceeds recovered by the Economic and Financial Crimes Commission (EFCC), as THECONSCIENCE NG reported

 -Recent Developments-

On January 3, 2025, NELFUND announced via its official X (formerly Twitter) page the successful disbursement of N419,723,446 to 3,032 students at the Federal University of Lafia. This milestone reinforces its commitment to providing financial aid to deserving Nigerian students and fostering access to higher education.

 

This allocation and the ongoing efforts by NELFUND signal a strong commitment to ensuring sustainable education financing in Nigeria, a critical step toward empowering the nation’s youth..

Bim theconscienceng

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