By Obah Sylva
The Federal Government is processing the remaining ₦1.7 billion under its interest-free tertiary staff loan scheme after ₦13.3 billion was disbursed to 7,450 beneficiaries in the first cycle, according to figures published by the Federal Ministry of Education.
Key Highlights
- ₦13.3 billion has been disbursed to 7,450 tertiary institution staff.
- The Federal Government is processing a remaining ₦1.7 billion under the interest-free loan scheme.
- The Tertiary Institutions Staff Support Fund is separate from the Nigerian Education Loan Fund for students.
- The Federal Ministry of Education transferred ₦15 billion to the Bank of Industry for the scheme.
- More than 42,000 applications have reportedly been submitted.
- 28,987 applications have been approved, while 8,604 loan offers have been issued.
- Eligible staff can access interest-free loans of up to ₦10 million.
- The scheme covers academic and non-academic staff of public universities, polytechnics and colleges of education.
- Staff unions initially criticised the facility as a potential debt trap, but applications increased amid economic hardship.
Federal Government Processes ₦1.7bn Tertiary Staff Loan Balance
The Federal Government is processing about ₦1.7 billion remaining under the Tertiary Institutions Staff Support Fund, following the disbursement of ₦13.3 billion to 7,450 beneficiaries.
The figures published by the Federal Ministry of Education show that ₦15 billion was transferred to the Bank of Industry (BOI), which administers the fund and makes payments to verified beneficiaries.
Of the amount, ₦13.3 billion has already been disbursed, while the remaining ₦1.7 billion is being processed through the institutional onboarding process.
The ministry said the 2025 programme had recorded a significant welfare impact during its first cycle.
Over 42,000 Tertiary Staff Applied for the Loan
More than 42,000 applications have been submitted under the tertiary staff support scheme.
According to the ministry’s figures, 28,987 applications have been approved, while 8,604 loan offers have been issued to successful applicants.
The difference between the number of approved applications, loan offers and actual disbursements reflects the onboarding process required before funds can be released.
The remaining funds are being processed as institutions complete the necessary verification and onboarding procedures.
Tertiary Staff Can Access Up to ₦10m Interest-Free
The Tertiary Institutions Staff Support Fund provides interest-free loans of up to ₦10 million to eligible academic and non-academic staff.
The scheme covers employees of public universities, polytechnics and colleges of education.
The programme is administered by the Federal Ministry of Education in partnership with the Bank of Industry, with disbursements beginning on October 28, 2025.
In June, the ministry said 7,450 beneficiaries had been drawn from 153 tertiary institutions.
Universities accounted for 52 percent of beneficiaries, while colleges of education represented 25 percent and polytechnics 23 percent.
Female staff accounted for approximately 19 percent of recipients.
Government Plans Fresh Application Window
Education Minister Tunji Alausa has linked the tertiary staff loan scheme to the Federal Government’s broader education reform programme.
The minister had also indicated that a fresh application window for the 2026/2027 cycle would open at the end of June.
The government has presented the facility as part of efforts to provide financial support to workers in Nigeria’s tertiary education sector amid rising living costs and economic pressures.
Staff Unions Initially Opposed the Loan Scheme
The loan programme initially faced criticism from some tertiary education unions.
The Academic Staff Union of Universities (ASUU) and the National Association of Academic Technologists (NAAT) had described the facility as a potential debt trap.
The unions argued that tertiary institution workers needed improved salaries and payment of outstanding wages and allowances rather than additional loans.
However, applications increased as economic pressures intensified.
By July, lecturers were applying for the facility despite the earlier reservations expressed by some unions.
Economic Hardship Drives Interest in Tertiary Staff Loans
Professor Adelaja Odukoya of the University of Lagos told the Nigerian Tribune that the growing interest in the loan programme reflected the economic hardship faced by many workers rather than necessarily a change in their assessment of the policy.
A union official also noted that only about 22.6 percent of applicants had received payments based on the June figures and called on the government to accelerate the release of funds.
The latest figures indicate that a substantial gap remains between approved applications and actual disbursements.
₦1.7bn Balance May Not Cover All Approved Applications
Although the government has paid ₦13.3 billion to 7,450 beneficiaries, the remaining ₦1.7 billion represents only a fraction of the funding required for the thousands of approved applications still awaiting disbursement.
With 28,987 applications already approved, the remaining funds will cover only a portion of applicants once the institutional onboarding process is completed.
The development puts renewed focus on the speed of verification, institutional onboarding and disbursement under the Tertiary Institutions Staff Support Fund.
The Federal Government’s ability to clear the outstanding approved applications will determine how widely the interest-free loan scheme delivers the financial support promised to tertiary institution workers.
