NELFUND: Is President Tinubu's Student Loan Working?
- Nigerian Education Loan Fund disbursed over N240 billion to 1.3 million students under interest-free loan scheme
- Students praised NELFUND for easing financial burdens while highlighting delays in disbursement processes
- Government aims to improve access to higher education through NELFUND's merit-based loan system
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Legit.ng journalist, Ridwan Adeola Yusuf, has over 9 years of experience covering education in Nigeria and Africa.
FCT, Abuja - Two years after establishing the Nigerian Education Loan Fund (NELFUND), the federal government has disbursed more than N240 billion to over 1,388,592 undergraduates across the country under the student loan programme.
According to a report on Sunday, June 28, 2026, by The Cable, NELFUND has disbursed a total of N282.20 billion in student loans and upkeep allowances to eligible students across the country as of Tuesday, May 5, 2026.
Source: Facebook
Tinubu's student loans reach millions
According to official figures released by the agency, 301 tertiary institutions have benefited from the programme, with N183.91 billion paid directly to institutions to cover students' tuition and other institutional charges.
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The data also showed that 1.59 million students have received upkeep allowances under the scheme, with N98.29 billion disbursed to support their living expenses.
Overall, the fund has released N282.20 billion through the student loan programme since its implementation. Supporters of the President Bola Tinubu administration say this reflects the federal government's effort to improve access to higher education by easing the financial burden on students.
Enacted under the Student Loan (Access to Higher Education) Act, 2024, signed by President Tinubu, the NELFUND is an interest-free student loan. It covers tuition fees and monthly upkeep allowances, while repayment is to commence two years after completion of the National Youth Service Corps (NYSC), according to The Punch.
In an interview with Arise News in April, Akintunde Sawyerr, the managing director of NELFUND, hailed the scheme, explaining that benefiting from it is completely on merit.
He revealed:
“I think for the first time in Nigeria, or certainly the first time in a very long time, people are starting to believe that you can actually benefit from government policies without knowing anybody.
"The system is totally agnostic to who you know. All you have to do is provide the right credentials, apply online, and you don’t need the help of anybody to be able to access this.
"I can tell you today that 1.3 million plus Nigerian students have benefited without having to have any handshake with anybody whatsoever."
Students highlight NELFUND's mixed impact
While there are gains with NELFUND, challenges exist too.
Although Arafat Raheem did not take the loan, two of her roommates at the University of Lagos (UNILAG) did, and they have had numerous discussions about the scheme.
She told Legit.ng:
"Honestly, it helps. Most Nigerian homes have more than three children. Using UNILAG Mass Communication as a case study, we currently pay N205,000, minus N80,000 for the public hostel, plus allowances. For a low-income family with two or three children in university, that is a lot.
"So NELFUND reduces the financial burden on households and also makes life easier for students with the monthly allowance. It may not be luxury, but it is enough to sustain them. However, disbursement often comes late, and that puts a lot of stress on students."
The Mass Communication student stated that on Monday evening, June 30, another NELFUND disbursement list was released, "but our portals are already closed."
She continued:
"Those who just received theirs now have to go to CITS to sort it out. We are two months into the second semester and done with the first semester. That money will now have to be used for next session. That means everyone still has to struggle to sort themselves out, even though an 'easier option', NELFUND, was presented to them."
In UNILAG, CITS (the Adetokunbo Babatunde Sofoluwe Centre for Information Technology and Systems) serves as the central hub for all ICT infrastructure, digital systems, and IT-related services for staff, students, and university management.
Ms. Raheem argued that NELFUND's disbursement process is not efficient enough and urged Nigerian authorities to make the scheme a genuine source of financial relief for students.
She said:
"Students are expected to pay this money back, but because of the delay, some do not even use it for school-related needs. Applying for the loan also takes a very long time. Some take three months in some cases, which frustrates the student and the family who are counting on it as relief."
Source: Twitter
For Sofia Yusuf, a student of the University of Ibadan (UI) and a former NELFUND beneficiary, the scheme has had a noticeable impact on students' welfare.
According to her, the loan has helped many students avoid the consequences of delayed tuition payments, including penalties, additional charges, and the inability to register for courses. Since course registration is a prerequisite for sitting examinations in many institutions, she said timely payment of tuition through NELFUND has enabled beneficiaries to meet academic requirements without unnecessary setbacks.
She added that students with other financial responsibilities can channel their limited resources to those needs once their tuition has been taken care of under the federal government's loan scheme.
However, Yusuf said the programme still faces significant challenges, particularly with the disbursement of upkeep allowances.
The 21-year-old explained that while some students apply for upkeep allowances expected to cover an entire academic session, they sometimes do not receive payments for the full nine months, despite the student portal showing calculations for the complete period.
"This means by the time they get to refund the loan, they are paying for money they did not receive," she noted in a chat with Legit.ng.
This reporter could not immediately obtain a response from NELFUND's management regarding the issues raised by the students.
Similarly, a message sent to Akinteye Babatunde Afeez, the national president of the National Association of Nigerian Students (NANS), was not responded to as of the time of this report.
Meanwhile, addressing concerns about the sustainability of the student loan scheme, Sawyerr said the programme is becoming more stable as its processes continue to improve.
Read more on NELFUND
- Nigerian students to get more funding as NELFUND confirms receiving N50bn from EFCC
- Student loan: Did EFCC "donate" N50 billion to NELFUND? Fresh facts emerge
- Student loan: UI announces refund of fees after NELFUND paid for 1,370 students
NELFUND asks students to embrace opportunity
Earlier, Legit.ng reported that Sawyerr called on students to take full advantage of the NELFUND student loan scheme, describing it as a historic initiative aimed at making higher education accessible to all, regardless of financial background.
The NELFUND MD spoke about the scheme’s 'alignment' with President Tinubu’s commitment to education.
Source: Legit.ng
