{
  "id": 6254868,
  "title": "NELFUND’s N355 billion loans at risk as recovery system remains untested – Report",
  "url": "https://urgent.news/2026/09/08/nelfunds-n355-billion-loans-at-risk-as-recovery-system-remains",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-08T08:42:08.000Z",
  "source": {
    "name": "Nairametrics",
    "slug": "nairametrics",
    "url": "https://nairametrics.com/2026/09/08/nelfunds-n355-billion-loans-at-risk-as-recovery-system-remains-untested-report/"
  },
  "original_language": "en",
  "account": "NELFUND, Nigeria's loan recovery agency, faces significant risks in managing its N355 billion loans, according to a recent report from the iRead To Live Initiative. The think tank warns that the student loan scheme, which began in 1972, failed due to loans being disbursed too quickly for the government to recover them. NELFUND has already disbursed N355.87 billion to 850,000 beneficiaries, with the first enforcement window anticipated around 2028. The think tank draws a direct comparison with previous schemes, highlighting a recurring pattern of rapid disbursement without a robust recovery system. The critical period before the first cohort enters enforcement will be crucial, as several unresolved issues could determine the scheme's sustainability. However, NELFUND faces challenges in an economy where 93% of employment is informal, and self-employment accounts for 85.6% of jobs, according to National Bureau of Statistics data from Q2 2024. The Federal Government has taken steps to strengthen NELFUND's funding base, but the scheme's success will depend on its ability to effectively recover loans from an economy with a largely informal workforce.",
  "summary": "NELFUND risks repeating the failures of Nigeria’s three previous student loan schemes unless it strengthens its loan recovery system before repayments begin, according to a higher education policy think tank, the iRead To Live Initiative. The post NELFUND’s N355 billion loans at risk as recovery system remains untested – Report appeared first on Nairametrics .",
  "key_points": [
    "NELFUND manages N355 billion loans, at risk due to untested recovery system.",
    "Student loan scheme launched in 1972, failed due to rapid disbursement.",
    "First enforcement window expected 2028, with unresolved issues looming."
  ],
  "editors_take": "The untested recovery system poses significant risks to NELFUND's N355 billion loans, threatening the scheme's sustainability in an economy with a largely informal workforce, where effective loan recovery is uncertain.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}