The federal lawmaker, who is also the Chairman, Senate Committee on Capital Market, warned that the current arrangement could undermine the sustainability and effectiveness of the student loan scheme.
Izunaso made the call on Thursday at a stakeholders’ forum on NELFUND in Abuja, where he also advocated increased funding contributions from state governments and corporate organisations to ensure the long-term viability of the programme.
Izunaso who represents Imo West Senatorial District described NELFUND as “one of the most practical achievements of this administration” and stressed the need to protect it from becoming a short-lived intervention.
He said, “Everything that has to be done for its sustainability has to be done, so that it will not die whenever this government leaves office. NELFUND must be sustainable.”
While commending the management of the fund for transparency and accountability, the senator argued that key provisions of the law establishing the scheme require review.
“I must commend the management of NELFUND. They have been transparent. They have been accountable. It is easy to Google how much money NELFUND has received and how much money they have disbursed. That is not the case with most government establishments, so we must commend them,” he said.
He, however, maintained that the repayment period stipulated in the law was unrealistic given the country’s unemployment challenges.
Izunaso said, “I think the National Assembly has to amend the Act setting up NELFUND. The issue of repayment after two years is not practical. We have to increase it to five years.
“Two years is not practical. In situations where jobs are not available and students have just completed the National Youth Service Corps, how are they expected to start repaying when there are no jobs?” he asked.
Izunaso also called for an upward review of the monthly stipend paid to beneficiaries, describing the current N20,000 allowance as inadequate.
“The monthly stipend of N20,000 is too little to sustain the students. That amount must be increased,” he said.
The lawmaker further raised concerns over accommodation costs, noting that the current intervention only covers tuition fees and monthly upkeep allowances.
He said, “NELFUND is taking care of school fees paid directly to institutions and giving N20,000 monthly to students. What happens to their accommodation?
“Where will they stay to learn? Schools are not providing accommodation free of charge,” he said.
According to him, the scheme was specifically designed to assist students from disadvantaged backgrounds and should therefore address their broader welfare needs.
He expressed concern that state governments, whose tertiary institutions are among the major beneficiaries of the scheme, were not making financial contributions to the fund.
He said, “It is sad enough that state governments are not contributing to NELFUND. Yet they are benefiting because NELFUND is taking care of students in both federal and state-owned institutions.
“The sub-nationals must be compelled to contribute to NELFUND. We have to engage the governors and bring them to the table to discuss the sustainability of the scheme.”
Izunaso also urged the Senate committee overseeing tertiary education to invite the NELFUND Board of Trustees to present its long-term sustainability plans.
“I think the Senate committee should invite the Board of Trustees of NELFUND to explain how far they want this programme to be sustainable. If they do not have plans, we can advise them on the best way forward,” he stated.
The senator further advocated stronger collaboration between NELFUND and government agencies responsible for employment generation to ensure beneficiaries secure jobs after graduation.
According to him, such collaboration would help prevent a situation where beneficiaries of the scheme complete their education only to remain unemployed.
He said, “There should be an inter-agency collaboration between NELFUND and other government agencies to ensure that these students are given priority in employment opportunities.
“NELFUND should be their father in terms of seeking avenues for employment.
“The same government that supports them through school should help create pathways for their entry into the labour market.”
Izunaso noted that approximately 1.6 million students were already benefiting from the scheme and argued that the success of the initiative should ultimately be measured not only by access to education but also by the employability of its beneficiaries.
He urged the Senate Committees on Tertiary Education and Labour and Employment to work with relevant ministries to develop a framework that would track and improve employment outcomes for NELFUND beneficiaries.
