Reported by Ariajegbe Sylvia Esezobor
The Nigerian Education Loan Fund has paid N7,786,400 to cover the institutional fees of 26 students of the State University of Medical and Applied Sciences, Igbo-Eno, Enugu State, under the Federal Government's student loan programme, in a disbursement that has triggered a refund process for students who had already paid their fees for the current academic session.
The payment was acknowledged in a letter dated July 6, 2026, signed by the university's Vice-Chancellor, Professor James Ogbonna, and addressed to the Managing Director of NELFUND, Akintunde Sawyerr. In the letter, titled "Acknowledgement of payment for 26 Students from State University of Medical and Applied Sciences, Igbo-Eno, Enugu State," the university confirmed receipt of the sum of N7,786,400 from the education loan fund. Ogbonna said the institution had commenced the process of refunding students who had already paid their fees for the 2025/2026 academic session. "We have already started refund to the students that have already paid their fees for 2025/2026 academic session," the Vice-Chancellor stated.
The payment to SUMAS forms part of a broader and rapidly expanding national student loan programme that has become one of the most consequential social interventions of the Tinubu administration. According to NELFUND's Student Loan Disbursement Status Report, the Fund had processed 1,659,853 student loan applications and disbursed a total of N355.87 billion to beneficiaries across 319 institutions as of September 3, 2026. Of that total, N192.89 billion was allocated to institutional fees, paid directly to the institutions, while N162.98 billion was provided as upkeep allowances paid directly to students to support their educational needs. The figures reflect the scale of the programme, which was launched with the opening of the NELFUND Student Loan Portal on May 24, 2024, following President Bola Tinubu's signing of the Students Loans (Access to Higher Education) Act in June 2023 and its subsequent repeal and re-enactment in 2024 to address governance and management challenges identified in the original legislation.
The disbursement to SUMAS is relatively modest in the context of the Fund's total outlay, but it carries significance for the students and the institution. SUMAS, established by the Enugu State Government and recognised by the National Universities Commission as the 59th state university and 219th university in the country, is one of the newer institutions in Nigeria's tertiary education landscape. It held its fourth matriculation ceremony in January 2026, inducting 1,888 students into academic life, and it operates a teaching hospital that has hosted free medical missions in partnership with Rotary International. The university's decision to commence refunds for students who had already paid their fees reflects a commitment to ensuring that the loan disbursement reaches the beneficiaries it was intended to serve, rather than remaining with the institution as surplus revenue.
The NELFUND scheme has been positioned by the Federal Government as a flagship initiative to democratise access to higher education by removing financial barriers for students in public tertiary institutions. The programme provides interest-free loans covering institutional fees and an optional upkeep allowance, with repayment obligations structured to commence two years after the completion of the National Youth Service Corps programme, and only for beneficiaries who are gainfully employed or earning an income. Beneficiaries who remain unemployed after the two-year period are not expected to make repayments until they secure employment or begin earning an income, and those who remain unemployed can seek extensions by providing a sworn statement in the manner prescribed by the NELFUND Board. The Fund has consistently debunked claims that defaulters face life imprisonment, describing such reports as misinformation and clarifying that the recovery framework is designed to be sustainable and fair.
The uptake of the programme has been uneven across Nigeria's geopolitical zones. In the South-East, where SUMAS is located, participation has been lower than in some other regions, with students in Anambra, Ebonyi and Enugu states attributing their low participation to delays in disbursement and concerns about the repayment process. The President of the Students' Union Government at the University of Nigeria, Enugu Campus, Bethel Okolo, said many students were discouraged by the slow processing of applications. The Enugu State Government has sought to address these concerns through a statewide awareness drive aimed at increasing participation in the programme, with officials emphasising that eligible students can access support for school fees and upkeep, reducing pressure on families and improving student retention.
The disbursement to SUMAS is part of a broader pattern of NELFUND payments to institutions across the country, as the Fund continues to expand its reach and process applications from students in hundreds of tertiary institutions. The Fund's dashboard shows that institutional fees account for more than half of the total amount disbursed, reflecting the programme's emphasis on clearing the fee obligations that most commonly prevent students from continuing their education. The upkeep component, paid directly to students, is designed to address the living expenses that can also derail academic progress, particularly for students from low-income households.
For the 26 students at SUMAS whose fees have been covered by the NELFUND payment, the disbursement represents the removal of a financial barrier that could have interrupted their studies. For those who had already paid their fees, the university's refund process offers a measure of relief that can be redirected to other educational or personal needs. For SUMAS as an institution, the payment strengthens its fee inflows and supports its capacity to retain students who might otherwise have dropped out for financial reasons. For NELFUND, the disbursement adds to a track record that the Fund's leadership cites as evidence of the programme's effectiveness in expanding access to higher education. As the Vice-Chancellor's letter confirmed, the payment has been received, the refund process has begun, and the students whose fees were covered can continue their academic journeys with one less burden to carry.
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