Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
Abuja, Nigeria — The Nigerian Education Loan Fund (NELFUND) has reached a significant milestone in its mission to expand access to tertiary education, announcing that it has disbursed more than N206 billion in student loans to beneficiaries across 270 tertiary institutions nationwide within 23 months of the programme’s launch. The announcement highlights the rapid scale-up of student financing and the government’s focus on addressing financial barriers to higher education.
Since the online application portal opened in May 2024, the fund has received a total of 1,751,669 applications, with 1,164,222 students successfully benefiting from the programme. Beneficiaries receive support either through direct payment of tuition fees to their institutions or as upkeep allowances to cover living expenses, ensuring that financial constraints do not interrupt their academic progress.
Of the N206 billion disbursed, N128.84 billion went directly to institutions to cover tuition fees, while N77.45 billion was allocated as upkeep allowances to students. The dual structure aims to alleviate the financial burden on students and families, reducing dropout rates and promoting academic continuity.
The Managing Director of NELFUND, Akintunde Sawyerr, explained that the loans are interest-free and come with flexible repayment terms that begin after beneficiaries complete the National Youth Service Corps (NYSC) programme and secure employment. The repayment framework includes a grace period and is structured according to graduates’ income levels, allowing students to manage repayment without undue financial pressure.
NELFUND was established under the Student Loans (Access to Higher Education) Act of 2024, which reformed previous student loan schemes that were hindered by restrictive eligibility criteria and limited reach. The fund provides financing for tuition, academic charges, and living expenses for students in approved universities, polytechnics, and colleges of education, while also implementing structured repayment mechanisms to ensure sustainability and affordability.
Despite the programme’s success, challenges have arisen. The Federal Ministry of Education investigated allegations that some institutions were making unauthorized deductions from disbursed loans or failing to properly account for the funds. NELFUND and the ministry have strengthened oversight measures to ensure transparency and that funds reach intended beneficiaries.
In one notable case, the University of Lagos was directed to refund students who had paid fees out of pocket before receiving the NELFUND disbursement. This intervention reaffirmed the fund’s commitment to ensuring that students benefit fully from the programme. Additionally, institutions are required to upload and verify student records on the fund’s portal to facilitate accurate and timely loan processing.
The fund also addressed technical issues affecting 11,685 students, reconciling nearly N928 million in pending payments due to failed transactions or invalid banking details. These measures demonstrate NELFUND’s proactive approach to ensuring all eligible students receive support without delay.
Stakeholders have praised the fund’s impact, noting that access to both tuition and living allowances has allowed students from low-income backgrounds to continue their education uninterrupted. Observers also highlight that the programme strengthens human capital development in Nigeria, contributing to broader socio-economic growth.
As the scheme continues, NELFUND has seen consistent application growth, reflecting both public confidence and the urgent need for accessible student financing. Analysts emphasise that the fund’s ongoing success depends on continued monitoring, institutional cooperation, and strict adherence to transparency and accountability standards.
The programme aligns with the government’s broader policy of promoting education as a key driver of national development, ensuring that financial constraints do not hinder talented students from completing their studies. By supporting more than one million students in less than two years, NELFUND has become a cornerstone initiative in widening access to higher education and fostering equitable educational opportunities across Nigeria.
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