In a bold move to strengthen and sustain Nigeria’s student loan scheme, the Federal Government has revealed plans to adopt a hybrid funding model inspired by Malaysia’s successful public-private partnership approach. The initiative, aimed at reducing the government’s sole financial burden, is expected to transform the Nigerian Education Loan Fund (NELFUND) into a more dynamic and inclusive institution.
Speaking during a media parley in Abuja, the Managing Director and Chief Executive Officer of NELFUND, Akintunde Sawyerr, said the government was actively exploring ways to integrate private sector participation into the national student loan programme. He described the model as a vital step toward ensuring long-term sustainability and improving access to higher education for millions of Nigerian students.
“NELFUND is an organisation that can only be sustained if we have private participation. The government cannot continue to support this 100 per cent financially,” Sawyerr stated.
He pointed to Malaysia’s National Higher Education Fund Corporation (PTPTN)—a scheme that blends government funding with private sector investments and savings-matching programmes—as a compelling template for Nigeria to emulate. PTPTN has become a global benchmark in student financing, offering affordable loans while partnering with private institutions to broaden access and equity in higher education.
“As with the student loan scheme in Malaysia, we will eventually need the private sector to wade in, make donations, and commit resources. No one in their right mind will invest in a project they believe is tainted by fraud or led by dishonest leadership,” he added, emphasizing the need for public trust and institutional integrity.
To this end, Sawyerr reaffirmed NELFUND’s commitment to transparency and accountability, revealing that the Fund now publishes daily loan disbursement updates on its official social media dashboard. He also called on journalists and civil society to serve as watchdogs—reporting any verified instances of misconduct—while cautioning against unverified allegations that could erode public confidence and deter potential private investors.
Since its establishment, NELFUND has disbursed over ₦73.2 billion in student loans and supported more than 396,000 beneficiaries across the country. However, recent concerns over a 900% hike in tuition fees across some public institutions have further intensified calls for expanded funding and more inclusive participation in the student loan scheme.
Countries such as the United States, United Kingdom, and Japan have long leveraged private sector partnerships to supplement student loan systems—creating innovative models that blend corporate funding, philanthropic contributions, and student repayment mechanisms to ease the burden on government coffers.
Analysts believe that replicating such models in Nigeria could unlock billions in additional education financing, enhance accountability, and ensure that the scheme reaches underserved communities without compromising on quality or reach.
As NELFUND positions itself for reform, many observers see this move as a crucial turning point—one that could reshape the future of higher education financing in Nigeria.
“We’re not just building a loan programme; we’re building a national trust. And that trust will only grow if everyone—government, private sector, students, and the media—plays their part,” Sawyerr concluded.