Beneficiaries of the Nigeria Education Loan, NEL fund will pay back when they have capacity to do so, the federal government has said.
The disclosure was made by the Executive Secretary, NELFund, Dr. Akintunde Sawyer, during an interview with the News Agency of Nigeria, NAN, in Abuja on Thursday.
Recall that the administration of President Bola Ahmed Tinubu introduced the loan, to assist indigent students to attain their university educational aspirations.
The policy was introduced last year, amidst scepticism that it may fail like other populists programmes.
Not a few Nigerians have also expressed doubts that the funds may end up in the hands of those who don’t necessarily need it.
On the other hand, beneficiaries of the loan may also find it difficult to pay back due to the unemployment in the country, policy analysts.
Sawyer however said the two years grace period is enough for beneficiaries to repay the loan.
“The law provides that for students who go into paid employment, repayment will be two years after NYSC, but that does not mean that they cannot pay back before that time.
“However, if they don’t have a job two years after NYSC, we cannot compel them to pay. Where are they going to get the money from? So, we will help them and wait for them to be able to pay.
“There will be a register of those who have taken the loan and employers will have access to that register and see who has a loan.”
On June 12, 2023, President Tinubu signed the Access to Higher Education Act, 2023 into law, to give opportunity to indigent students who need interest-free loans to pursue their education ambitions .
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