The Managing Director of the Nigerian Education Loan Fund, Mr Akintunde Sawyerr, has identified weak institutional IT infrastructure and inaccurate student data as the primary obstacles slowing down loan disbursement to Nigerian students.

Sawyerr, speaking in an interview, was direct about the limitations of the current system. "We haven't overcome all the challenges, let me be very clear about that. Our system is largely IT based, and we depend heavily on data provided by different schools about their students," he stated. He noted that students cannot successfully apply for loans if their institutions submit incomplete or inaccurate data, adding that the automated system simply will not process incorrect information.

He further disclosed that schools operate with varying levels of IT efficiency, making integration across institutions complex. Situations where schools cannot confirm receipt of funds due to poor account monitoring have also created delays in communication.

On the report that 11,000 students were affected by unpaid upkeep allowances in January, Sawyerr attributed the problem to incorrect bank account details, missing name matches, misuse of family members' BVN details, and students who never applied for the upkeep allowance separately from the main loan. He added that some applicants misunderstood the coverage period, noting that the allowance covers only the remaining duration of the academic session, not a full 12 months from approval.

Responding to calls to increase the N20,000 monthly upkeep allowance, Sawyerr was measured. "At the moment, there are no plans to increase the allowance in the immediate future," he disclosed, acknowledging inflationary pressures but maintaining that reviewing the amount every few months was not feasible.

On transparency, he confirmed that all disbursements are processed electronically, with funds moving directly from the Central Bank to institutional accounts. Schools are required to issue acknowledgement receipts, which are published publicly. Regarding repayment, Sawyerr clarified that beginning in the third year after completing NYSC, employers deduct 10 percent of the beneficiary's salary and remit it to the scheme until the loan is fully repaid.

He concluded that schools must prioritise two areas to improve the process. "Schools need to focus on two key areas: aligning their academic calendars and improving their IT systems and responsiveness," he affirmed.