NASS warns against clogging NELFUND with irrelevant projects like other MDAs

The National Assembly Joint Committee on Tertiary Institutions and TetFUND warned on Thursday against running the newly-established Nigerian Education Loan Fund (NELFUND) like other Ministries, Departments and Agencies (MDAs) of the Federal Government that ended up embarking on projects that had no bearing on their existence.

The warning came as the Managing Director of the agency, Mr Akintunde Sawyerr, appeared before the committee to defend its 2025 budget proposals.

The committee is jointly chaired by Sen. Muntari Dandutse and Hon. Gboyega Isiaka.

Sawyerr listed some projects for which the agency allocated funds for execution, including N12 billion for the purchase of a headquarters building, N4 billion for sensitisation and awareness creation, and N2 billion for data capture and operations.

However, senators and members of the House of Representatives faulted some of the projects, warning NELFUND against “clogging” itself with projects like other MDAs.

For instance, Sen. Adetokunbo Abiru pointed out that NELFUND did not need to budget N12 billion to buy a building for its head office operations.

He advised the agency to liaise with the Economic and Financial Crimes Commission (EFCC) and apply for any of the many buildings forfeited to the government as proceeds of crime.

Abiru, who is the Chairman, Senate Committee on Insurance and other Financial Institutions, spoke further, “These are huge expenditures you are using taxpayers’ money to carry out.

“Let us be very careful so that we don’t clog NELFUND with the same problems that have affected many agencies in Nigeria. This is a new organisation.

“If you want the private sector to come in and partner, and they do come in, these are the types of figures they will be pointing out.”

Also speaking, Sen. Jimoh Ibrahim called on the agency to focus on its core mandate of disbursing loans to students for now, which did not really require NELFUND to operate with any huge overheads or go into the execution of major capital projects.

“I think you have to listen and appreciate all the comments and observations made so far by distinguished senators.

“This is an agency that must succeed and we should do everything to ensure its success,” he added.

Meanwhile, Sawyerr disclosed that so far, N116.184 billion had been disbursed for the upkeep of students across 176,252 institutions.

For its operations in 2025, he said an envelope of N58.4 billion was given to the agency.

Giving further clarification, Sawyerr said out of the N116.184 billion, the sum of N37.7 billion was disbursed as loans to applicants.

A total of 352,796 students applied for the loans, while 108,484 accessed the money.

The MD gave the breakdown of the 2025 proposal thus: “Out of the N58.4 billion budgetary proposal for 2025, N12.2 billion is earmarked for personnel cost, N24.7 billion for overhead cost and N21.4 billion for capital expenditure.”

The panel later approved the proposals.

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