With tuition fees soaring and economic hardship tightening its grip on households across Nigeria, many students have turned to the Nigerian Education Loan Fund (NELFUND) as a financial lifeline. For some, the scheme has made the dream of completing higher education possible. For others, it is a work in progress that holds great promise but still needs urgent fixes.
President Bola Ahmed Tinubu signed the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Bill into law in April 2024, repealing the flawed 2023 version. The revamped Act aimed to clear the hurdles that plagued the earlier legislation—ranging from convoluted application processes and restrictive eligibility to unclear repayment terms and weak governance.
Under the new framework, NELFUND now offers interest-free tuition loans and a flexible repayment plan. Beneficiaries are expected to begin repayment two years after completing the National Youth Service Corps (NYSC), with a provision for unemployed graduates to defer repayment by submitting an affidavit.
In its first year of operation, NELFUND disbursed a total of ₦56.85 billion to over 298,124 students across 198 tertiary institutions. Of this, ₦30.18 billion went towards tuition, while ₦26.63 billion was disbursed as monthly upkeep allowances.
A Bridge to Opportunity
Speaking on the first anniversary of the scheme, NELFUND Managing Director, Mr. Akintunde Sawyerr, described the initiative as “a bridge to opportunity, equity, and national transformation.” He credited President Tinubu’s Renewed Hope Agenda for driving what he called one of the most impactful student-centered interventions in Nigeria’s recent history.
But while NELFUND has won praise for its scope and intent, mixed reactions from students suggest the implementation still needs fine-tuning.
Stories from the Field: Relief, Hope, and Frustration
Sulyman Qozeem, a final-year student at Usmanu Danfodiyo University, Sokoto (UDUS), described NELFUND as a “lifesaver” during a financial crunch in his third year. “I was able to pay my school fees before the deadline,” he said, grateful he didn’t have to defer a session. Qozeem also lauded the fairness of the scheme, noting that he faced no discrimination or lobbying pressure.
Saba Hanifa, a 300-Level Biology Education student also at UDUS, echoed this sentiment. “It helped me afford necessities beyond food,” she said, although she called for more transparency in the loan approval stages—pending, verified, and approved. Her major concern: the system’s occasional unavailability and poor responsiveness.
Elisha Oluwaseyi, a nursing student at Olabisi Onabanjo University, Ogun State, suggested that NELFUND should consider schools’ academic calendars when making disbursements. “Timely disbursement is key,” he said, particularly for newly-admitted students.
Goodness Obedi, a final-year student at the University of Nigeria, Nsukka, shared a more complicated story. After experiencing delays, she nearly gave up on the scheme—until she received a refund notice that led to eventual disbursement. “I can’t contain my joy,” she admitted, calling NELFUND her “knight in shining armour.”
Chinweoke Timothy, also from UNN, praised the clarity of the application process, even though the disbursement phase was slower. “The seminars organized really helped, but the waiting time was long,” he noted. Nonetheless, he plans to repay his loan after graduation.
In Lagos, Williams Peniel, a Mass Communication student at LASUSTECH, recalled initial skepticism. “We’ve heard too many promises before,” she said. But the smooth application process convinced her. Still, Peniel flagged discrepancies in the institutional fee—she applied for ₦120,000, but her school fees were ₦79,000. “Now I owe ₦120,000 but was paid less,” she said, calling for clarity and an upward review of the ₦20,000 monthly upkeep stipend.
Ibrahim Oluwakemi Fatimo, a 300-Level student at LASUSTECH, described the process as smooth but raised concerns over delayed upkeep payments. “We got paid twice in March, but that doesn’t fix the delay,” she said, urging for both increment and timeliness.
Akilo Rasheedat, a 200-Level student of the same institution, appreciated the scheme's impact on her financial independence but added: “The delay in disbursement causes real hardship. Let the payments come when students need them most.”
At Bayero University Kano, Abubakar Itopa expressed his appreciation. “This is the most helpful student scheme I’ve witnessed,” he said, urging for continuity to assist younger students still at home.
At the University of Ilorin, a 300-Level student called for more transparency and consistent payments. “Everyone saw it as a welcome development, but more accountability is needed,” he said.
A Call for Reform and Sustainability
While testimonies show the transformative power of the student loan scheme, many beneficiaries agree that delays in disbursement, discrepancies in payment, and portal inefficiencies must be urgently addressed.
The Senior Special Assistant to the President on Student Engagement, Comr. Asefon Sunday, praised President Tinubu’s “unwavering support for education,” adding that NELFUND has helped “bridge socio-economic gaps” and must be protected and improved.
For now, NELFUND remains a work in progress—one that has sparked hope, delivered real relief to many, and still carries the potential to reshape access to education in Nigeria. The coming months will be crucial in determining whether this intervention can evolve into a lasting national legacy.
The Nations
