Nigeria’s ambitious student loan programme under the Nigerian Education Loan Fund (NELFUND) has hit a new landmark, revealing that a total of ₦154.37 billion in interest-free loans has been disbursed to nearly 789,000 students across the country. The announcement marks a significant step in widening access to tertiary education and easing the financial burden on students and families.
This latest figure captures the cumulative support provided since the loan scheme began in May 2024, reflecting sustained growth in uptake and implementation across public universities, polytechnics, colleges of education, technical training institutions, and approved nursing schools.
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NELFUND Records Growth in Student Support and Loan Uptake
Since the programme was launched, NELFUND has received over 1.26 million applications from students seeking financial assistance. Of these, roughly 788,947 applications have been processed and approved, representing more than 62 percent of all submissions.
The way the funds are allocated reveals a thoughtful design aimed at covering both mandatory school fees and living expenses. Roughly ₦82.35 billion of the total amount disbursed has been paid directly to more than 260 institutions on behalf of students to clear tuition and other obligatory charges. An additional ₦72.02 billion has been released directly to students as upkeep allowances to help ease their day-to-day expenses while studying.
This dual support structure is critical in a country where many families struggle with the rising cost of higher education and the economic realities of supporting students outside major population centres.
Over the past year, the programme has expanded its reach across Nigeria’s 36 states and the Federal Capital Territory, touching communities and families that only recently saw student loans of this quality become available as a public policy tool.
NELFUND Digital Process and Eligibility Rules Improving Transparency
NELFUND uses a fully digital application and verification portal designed to streamline processing and ensure transparency. Students apply online, submit required documentation, and, following verification, have loans credited either to their institution or to their personal accounts for upkeep fund.
Managing Director Akintunde Sawyerr has highlighted the importance of thorough verification and data accuracy for the integrity of the scheme. Delays in some applications, he said, are often due to incomplete student data or irregular details from institutions. To tackle this, a 30-day screening period is observed before funds are released.
Under the scheme’s repayment policy, students are required to repay only the amount borrowed with no interest attached. Repayments are scheduled to begin two years after completing the mandatory National Youth Service Corps (NYSC) service, and only after students secure gainful employment.
This feature is generating optimism among students who have long struggled with high-cost loan programmes that carry interest and rigid repayment terms.
Impact of Interest-Free Loans on Student Experience
For many Nigerian families, education represents both hope for the future and a financial challenge. The introduction of an interest-free student loan programme has shifted this balance for hundreds of thousands of students who would otherwise face tough choices between pursuing degrees or joining the workforce due to financial constraints.
The programme’s structure is helping students manage school fees without incurring crippling financial obligations after graduation. In practical terms, the monthly upkeep allowances support housing, food, books, transportation, and other essential living expenses that often distract students from their studies.
Students in public universities and other approved institutions have expressed that having access to these funds has eased anxiety about how to meet school requirements each semester. Families who previously relied on multiple loans from informal lenders are now finding a stable, government-backed source that prioritises education first.
These outcomes align with NELFUND’s broader mandate to create a sustainable and accessible student financing model in Nigeria.
Challenges and the Way Forward
As with many large-scale public programmes, the student loan initiative has faced operational challenges. Some applications have suffered delays because of irregular or incomplete documentation submitted by students and slow verification by institutions.
Beyond administrative hurdles, discussions continue around expanding the scheme to reach students in private tertiary institutions. President Bola Tinubu has reportedly expressed interest in widening coverage, but limited resources currently restrict inclusion to public schools only.
The government’s long-term vision involves making higher education financing more equitable and capable of adapting to Nigeria’s growing student population. Analysts indicate that expanding outreach and improving institutional collaboration will be essential for future growth.
Critics, however, urge continuous oversight to ensure funds are used as intended and that institutions do not make unauthorised deductions from student accounts. Previous concerns raised by stakeholders in the education sector demonstrate the need for vigilance and clear policy guidelines to maintain student trust and programme transparency.
Despite these challenges, the scale of the support already delivered signals a meaningful shift in how education is funded in Nigeria. What began as an ambitious policy idea has evolved into a functioning lifeline for students across the nation.
NELFUND’s loan scheme is reshaping access to education finance in Nigeria by disbursing ₦154.37 billion to nearly 789,000 students. With interest-free terms, digital processing, and structured support for tuition and upkeep, the programme is easing financial barriers and opening pathways to sustained academic success. However, continued improvements in data accuracy, institutional cooperation, and potential expansion to include private sector students will be key to strengthening this initiative in the years ahead.
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