Senator Seeks NELFUND Act Amendment, Proposes Five-Year Repayment Window

Senator Osita Izunaso has called for an urgent amendment to Nigeria's Education Loan Fund (NELFUND) Act, proposing an extension of the repayment period for student loan beneficiaries from the current two years to five years. Izunaso, who chairs the Senate Committee on Capital Market and is a member of the Committee on Tertiary Institutions and TETFund, believes the existing two-year repayment window is unrealistic, particularly in light of Nigeria's high unemployment challenges. He argued that expecting recent graduates, especially those who have completed the National Youth Service Corps, to begin loan repayment when job opportunities are scarce could undermine the scheme's sustainability.

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I think the National Assembly has to amend the Act setting up NELFUND. The issue of repayment after two years is not practical. We have to increase it to five years.

Speaking at a stakeholders' forum on NELFUND in Abuja, Izunaso described the fund as a practical achievement of the current administration and stressed the importance of ensuring its long-term viability. He commended the NELFUND management for their transparency and accountability, noting that financial details are easily accessible online, unlike many other government establishments. However, he maintained that key provisions of the law require review to protect the scheme from becoming a short-lived intervention.

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Two years is not practical. In situations where jobs are not available and students have just completed the National Youth Service Corps, how are they expected to start repaying when there are no jobs?

Beyond the repayment period, the senator also advocated for increased financial contributions towards the fund from state governments and corporate organizations. He further suggested an upward review of the monthly stipend provided to beneficiaries, deeming the current N20,000 inadequate for students' sustenance. Izunaso also raised concerns about accommodation costs, pointing out that the scheme currently only covers tuition fees and monthly upkeep, leaving students to find their own housing. He emphasized that the scheme, designed for students from disadvantaged backgrounds, should address their broader welfare needs.

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The monthly stipend of N20,000 is too little to sustain the students. That amount must be increased.