NELFUND expands loan scheme to vocational centres, flags off in Enugu

The Nigerian Education Loan Fund (NELFUND) has announced the expansion of its loan programme to vocational skills centres across the country, starting with Enugu State.

The Executive Director of Operations at NELFUND, Iyal Mustapha, stated this during a sensitisation tour campaign in Enugu on Friday.

According to a statement sent to PREMIUM TIMES, the initiative is designed to boost access to technical and vocational education at various skills centres through loans that cover training costs, upkeep support and starter tools for trainees.

Mr Mustapha said the sensitisation tour included visits by the NELFUND management to the Institute of Management and Technology (IMT), Enugu College of Education Technical, a technical school, and the MSME Clinics Fashion and Garment Hub in Enugu.

He said the exact amount for upkeep is still being finalised and added that institutional charges, including transport costs, would form part of the loan package.

Enugu among model states

According to Mr Mustapha, NELFUND has expanded this initiative to over 10 states, with Enugu being a standout.

During a visit to the fashion and garment hub, he stated that there is a lot of positivity based on what they have seen.

“We have seen different skill centres, from the technical colleges’ side and from the vocational skill centres, like the fashion design and all.”

He added that beneficiaries from Enugu will be linked directly to accredited centres within the state, streamlining access training and support.

Portal to open for vocational applicants

Mr Mustapha told stakeholders at IMT and Enugu College of Education Technical that the agency’s portal will soon open to applicants interested in vocational training.

“Supporting vocational skills, we are going to open our portal up for people to apply for vocational skills and we will also designate these centres in places they stay,” he said.

He added that the loan programme is part of NELFUND’s broader mandate to make education, both academic and vocational, accessible to Nigerians.

State government welcomes initiative

The Special Adviser to the Enugu State Governor on Digital Economy and SME Development, Arinze Chilo-Offiah, said the state is ready to absorb all the support from the agency.

Mr Chilo-Offiah highlighted the capacity of the fashion hub, which houses about 150 industrial sewing machines, world class monogramming machines and can accommodate close to 500 trainees.

“This is just the fashion hub. With NELFUND support and zero-interest loans, we will be able to scale up training,” he said.

The Institute of Management and Technology acting registrar, Patricia Nwanneka, welcomed the initiative and said educating students on the loan procedures and benefits would drive more people to apply.

Mrs Nwanneka said, “The loan is a good one. At least now that they have gotten more knowledge. And even after you people have left, we will go on to educate more of them, inculcating them into applying for the loan.”

About NELFUND

NELFUND is a creation of the Access to Higher Education Act, signed by President Bola Tinubu.

The Fund is tasked with handling all student loan requests, grants, disbursement, and recovery of the loans provided.

The Fund is being funded from multiple streams and will engage in other productive activities. It will also be funded through donations, gifts, grants, endowments, and revenue accruing to the fund from any other source, according to the Act.

Initially, the loan programme targeted students in federal government-owned tertiary institutions. The first phase of the loan application portal was opened to these students, and included state-owned institutions in subsequent phases.

READ ALSO: NELFUND: Against a culture of impunity, By Dakuku Peterside 

In a move to broaden access, President Tinubu directed NELFUND to extend the interest-free loan programme to Nigerian students enrolled in skill acquisition programmes.

This directive aimed to support individuals pursuing vocational training, recognising the importance of technical skills in national development.

Since its inception, NELFUND said it has received a total of 364,042 student loan applications and has approved 192,906 applications from various institutions across the country.

The Fund said it has disbursed a total of N20 billion (N20,074,050,000) for institutional fees as of 3 February. It added that it has disbursed N12 billion (N12,818,960,000) as upkeep to 169,114 students.