Gov Okpebholo Launches NELFUND Scheme in Edo: A Game-Changer for Students

Edo State Partners with NELFUND to Provide Interest-Free Student Loans

Edo State Governor, Senator Monday Okpebholo, has officially launched the Nigeria Education Loan Fund (NELFUND) scheme in the state, a move aimed at providing financial assistance to students in higher institutions. Represented by Deputy Governor Rt. Hon. Dennis Idahosa, the launch underscores the administration’s commitment to making higher education accessible to all Edo State indigenes, irrespective of financial background.

The NELFUND initiative seeks to eliminate financial constraints by offering interest-free loans to students pursuing higher education, vocational training, and skills acquisition. The scheme also provides a monthly stipend of ₦20,000, ensuring students have financial support for living expenses while studying.

How the NELFUND Loan Works

The NELFUND student loan is designed as a revolving scheme to help students finance their education without undue financial stress. Below is a breakdown of the scheme’s structure:

• Eligibility: Open to students enrolled in Nigerian tertiary institutions, including universities, polytechnics, and colleges of education.
• Loan Coverage: Covers tuition fees, academic materials, and living expenses.
• Monthly Stipend: Beneficiaries receive ₦20,000 per month while studying.
• Repayment Structure: Loan repayment begins two years after completing NYSC, with employers required to deduct 10% of the beneficiary’s salary at the source.
• Application Process: Students can apply online through the official NELFUND website (https://nelf.gov.ng).

Sensitization Program Across Edo State

To ensure widespread awareness, the Edo State Government organized a two-day sensitization program across the state’s three senatorial districts. The events took place on March 11 and 12 at the following locations:

• Edo South: Edo State Polytechnic, Usen
• Edo Central: Ambrose Alli University Student Conference Centre, Ekpoma
• Edo North: Edo University, Iyamho

During the sensitization, students were guided on the eligibility criteria, application process, and repayment plans. This initiative ensures that students fully understand the benefits and responsibilities attached to the NELFUND loan scheme.

Also Read: NELFUND Links Loan Portal to Schools for Seamless Student Verification

How to Apply for the NELFUND Loan in Edo State

Applying for the NELFUND student loan is a straightforward process. Here’s a step-by-step guide:

1. Visit the NELFUND Official Website – Go to https://nelf.gov.ng.
2. Create an Account – Sign up using a valid email and phone number.
3. Fill Out the Application Form – Provide details such as academic institution, program of study, and financial requirements.
4. Upload Required Documents – These may include proof of admission, student ID, and bank details.
5. Submit Application – Wait for verification and approval.

Once approved, funds are disbursed directly to the beneficiary’s institution to cover tuition fees, while the ₦20,000 stipend is credited to the student’s bank account monthly.

Impact of NELFUND on Edo State Students

The introduction of the NELFUND scheme in Edo State is expected to have a transformative impact on students. Key benefits include:

• Reduced Dropout Rates: Many students abandon education due to financial constraints. The interest-free loan will help them stay in school and complete their studies.
• Financial Relief for Parents: With government-sponsored education loans, parents no longer bear the full burden of tuition and upkeep costs.
• Encouragement for Vocational Training: Beyond university students, NELFUND also supports vocational training, encouraging skill acquisition among young people.
• Boost to the State’s Workforce: Graduates who complete their education will contribute to Edo State’s economic development and workforce capacity.

NELFUND Loan Repayment: What Beneficiaries Need to Know

While the NELFUND student loan is a fantastic opportunity, it comes with a structured repayment plan to ensure sustainability. Here’s how repayment works:

• Repayment Starts Two Years After NYSC – Beneficiaries are given a grace period of two years post-NYSC before repayment begins.
• Salary Deduction System – Employers are mandated to deduct 10% of the beneficiary’s monthly salary at the source.
• Flexible Repayment Options – Self-employed beneficiaries can negotiate a flexible repayment plan based on their earnings.

Failure to repay the loan within the agreed timeframe may result in penalties or legal consequences, making it essential for beneficiaries to plan their finances accordingly.

Challenges and Concerns Surrounding the NELFUND Scheme

While the NELFUND initiative is commendable, certain challenges and concerns have been raised:

1. Implementation and Accessibility: Some students worry about bureaucratic delays in accessing the funds.
2. Loan Repayment Enforcement: There are concerns about how effectively loan repayment deductions will be enforced, particularly for self-employed graduates.
3. Sustainability of the Scheme: Given the economic fluctuations in Nigeria, some experts question the long-term sustainability of the initiative.

The Future of Education Financing in Nigeria

The launch of NELFUND in Edo State signals a shift towards structured education financing in Nigeria. If successfully implemented, it could serve as a model for other states, reducing the education funding gap and ensuring that no Nigerian student is deprived of quality education due to financial constraints.

For students in Edo State, this initiative represents a golden opportunity to pursue higher education without financial hardship. By making education accessible and affordable, Governor Okpebholo’s administration is taking a significant step toward empowering the youth and driving economic growth in the state.

For more details and to apply for the NELFUND student loan, visit https://nelf.gov.ng.