The Managing Director of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, has rejected allegations of financial misappropriation within the agency, insisting that there is no evidence that NELFUND has diverted or misused funds meant for student loans.
Sawyerr made the clarification during an interview with ARISE NEWS on Monday, August 31, 2026, while responding to concerns surrounding the management and transparency of funds under the Federal Government’s student loan programme.
According to him, NELFUND requires substantial capital to provide loans to students, explaining that the programme is part of the Federal Government’s broader welfare initiatives following the removal of fuel subsidy by President Bola Ahmed Tinubu.
The NELFUND boss said the funds previously spent on subsidy were being redirected towards welfare programmes, with student financing among the initiatives benefiting from the government’s new approach.
Sawyerr also defended the agency’s financial operations, rejecting claims that its disbursement system is opaque. He said payments are made electronically, making it possible to track the movement of funds from the Central Bank of Nigeria to beneficiary institutions and students.
He disclosed that NELFUND had recently transferred more than N1 billion to the University of Ibadan, with the money paid directly to the institution. He added that students’ upkeep allowances were also transferred directly into their bank accounts.
The NELFUND chief argued that the electronic nature of the transactions provides an audit trail and makes it difficult for funds to disappear without being traced.
He said the agency’s system was designed to reduce human interference in the process, with funds meant for institutional fees going directly to verified institutions while upkeep payments are made directly to eligible students.
Sawyerr also addressed concerns about who qualifies for the student loan, stressing that the application system does not discriminate on the basis of gender, ethnicity or personal connections.
He said applicants are processed electronically and that the system does not distinguish between Nigerians from different ethnic groups, provided they meet the required conditions.
According to him, applicants must have a National Identification Number (NIN), a JAMB registration number, evidence of admission into a recognised tertiary institution and a valid bank account for payments.
He stressed that NELFUND does not make cash payments and that the electronic system is designed to ensure that beneficiaries receive funds through verified channels.
Sawyerr further dismissed concerns that applicants with personal relationships with NELFUND officials could receive preferential treatment, saying the system does not recognise whether an applicant is a friend or relative of senior officials.
He maintained that the agency remains focused on expanding access to higher education by providing financial assistance to students who may otherwise struggle to remain in school because of financial difficulties.
The NELFUND boss acknowledged that some students have experienced challenges with applications, payment and access to their academic programmes, but described such cases as relatively uncommon and said the agency addresses them when they arise.
His comments come amid renewed scrutiny of the administration of Nigeria’s student loan programme and calls for greater transparency in the handling and distribution of public funds.
Sawyerr, however, maintained that there is no evidence of financial misappropriation by NELFUND, insisting that the agency’s electronic payment structure allows its transactions to be tracked and verified.