One year after: Has NELFUND delivered on its promise?
Campus Life
With tuition fee hike and economic hardship biting harder for the average Nigerian household, many students have looked to the Nigerian Education Loan Fund (NELFUND) for succour.
President Bola Tinubu, April last year, signed into law, the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Bill, 2024, serving as an amendment to the now defunct Student Loans Act(2023) which was repealed due to its inherent challenges that bordered around governance and management, purpose of the loans, eligibility criteria for applicants, method of application, repayment provisions, and recovery of the loans, all of which proved a great obstacle in applying for, and obtaining it.
Consequently, with the new Act, the desires of a vast majority of Nigerians to obtain tertiary education can now be reached through the NELFUND scheme, thus, eliminating financial bottlenecks as it offers seamless, interest-free tuition loans.
More interesting is that the scheme offers a flexible repayment plan as beneficiaries, according to the provision of the Act, shall be responsible to repay two years after the National Youth Service Corps (NYSC) programme, meaning that the Fund shall not initiate loan recovery efforts until two years after the completion of the NYSC programme.
Moreover, a beneficiary, according to the Act, may request an extension of enforcement action by the Fund by providing a sworn affidavit indicating that he/she is not employed in any capacity and is not receiving any income.
The NELFUND has disbursed about N56.85bn in loans for tuition fees and upkeep allowances for 298,124 students in 198 tertiary institutions across the country in one year.
The initiative was launched on May 24, 2024, by the present administration to empower students by removing financial obstacles to higher education.
In a statement, NELFUND provided a breakdown of the figures, which indicated that N30.18bn was disbursed as institutional fees paid to students by NELFUND, while the sum of N26.63bn was disbursed as upkeep allowance to the beneficiaries.
Speaking on the first anniversary, Managing Director/Chief Executive of NELFUND, Mr Akintunde Sawyerr, said: “One year ago, we launched a promise to Nigerian students. Today, we’re proud to be delivering on that promise. NELFUND is more than a loan scheme; it’s a bridge to opportunity, equity, and national transformation.
“Backed by the vision of President Bola Ahmed Tinubu’s Renewed Hope Agenda, the NELFUND initiative has quickly become one of the most impactful student-focused interventions in Nigeria’s recent history. Through continuous collaboration with institutions, state governments, and student bodies, the Fund remains committed to deepening its reach and improving the student loan experience.”
However, the agency’s progress is met with mixed reactions from students, who feel that more can be done to improve the disbursement process, among others.
Sulyman Qozeem, a final-year student at Usmanu Danfodiyo University, Sokoto (UDUS), a beneficiary of the loan scheme, appreciates its help and timeliness. Left with no other means to pay his school fees, Qozeem applied for the loan during the 2023/2024 academic session, his third year.
“I was able to pay my school fees before the deadline,” he recalls with relief, grateful to have avoided deferring an academic session. Qozeem, whose studies were sustained by the scheme’s support, credits the financial ease it provides as a succour for those holding on to hope.
This initiative has proven effective, as evident in Qozeem’s experience: “I received the loan without any form of lobbying,” he adds, highlighting the bill’s nondiscrimination based on gender, religion, tribe, position, or disability of any kind.
Another student, Saba Hanifa, a 300-Level student at the Department of Education Biology at (UDUS), who benefited from the loan scheme, recounted the financial ease it provided. “I was managing well with financial support from my parents, but with NELFUND, I could afford additional necessities beyond food,” she said. This newfound financial stability has helped her concentrate better on her academic pursuits, relieved of the stress of financial constraints.
However, Hanifa expressed concerns about the application process, which involves several stages: pending, verified, and approved. After submitting the required information, an applicant’s loan status initially shows “pending.”
She emphasised the need for transparency regarding the duration of this stage. Once verified, NELFUND confirms the applicant’s information matches the student database received. The final stage, approval, determines whether the applicant receives funds for institutional fees and a monthly stipend of N20,000 for 12 months.
Hanifa shared a challenge she faced: “One major issue I encountered was accessing the portal during certain periods; it was either slow or unavailable,” highlighting the need to improve the application process for smoother educational support.
Apart from the challenges faced during the application process, the disbursement process also shows that more can be done.
Elisha Oluwaseyi, a nursing science student at Olabisi Onabanjo University (OOU), Ago-Iwoye, Ogun State, noted that things could be done differently for better delivery.
“Of course, it’s not just about covering school fees. NELFUND’s collaboration with eligible institutions is good, but they need to understand their academic calendars and make timely disbursements. When this is done, everything will make sense,” he said.
Further findings revealed that the timely disbursement of school fees would greatly help newly-admitted students.
Oluwaseyi expressed concerns on the disbursement of the monthly upkeep allowance, citing the late payment of last month’s upkeep as an example.
Goodness Obedi, a final-year student at the University of Nigeria, Nsukka (UNN), said: “At first, I didn’t think it was going to work, especially for the fact that Northern applicants got theirs approved and paid not too long after the application while ours down East was delayed. I lost faith in NELFUND and decided to source my fees elsewhere.
“I completely forgot about the whole thing until a few weeks ago when there was a viral message asking people who had applied to text a particular person for a refund. It was at that point I discovered that the fees had been paid and I could finally access the funds. A few days after I provided my details and all necessary requirements for confirmation and approval, I was refunded as promised and I can’t contain my joy because NELFUND has used this medium to lift my financial burden, especially as a final-year student. I don’t know if it’s safe to say, that NELFUND is my knight in shining armour.”
Chinweoke Timothy, a 400-Level student of the Department of Electrical Engineering in UNN, said: “Applying for the loan was stress-free and easy. It is something anybody can do on their own. The application process was well explained and a seminar was even organised to give more elaborate information about it. But the disbursement took quite a long time, maybe due to verification and other factors.”
Speaking on repayment after graduation and Youth Service, he said he would work towards repaying the loan after graduation and working for a year.
Recounting her experiences about the scheme, a 300-Level Mass Communication student of the Lagos State University of Science and Technology (LASUSTECH) Ikorodu, Lagos, Williams Peniel who could barely contain her joy about the scheme, explained that the scheme had come through for her in many ways.
“The institutional loan was really helpful for me because it came when I really needed it. I really didn’t believe this was real.
“I had been hearing rumours about the student loan but did not believe it initially because of the consistent promise and fail attitude of successive governments. Then our lecturers started talking about it and encouraged students to apply.
“Thereafter, we started seeing NELFUND posters everywhere, asking students to apply. The application process was very smooth for me and I did it at a go,” she said.
However, she expressed displeasure over the delay in disbursement of the monthly upkeeps and the discrepancy in her payment account.
Her words: “ I don’t like the fact that my school fee is N79,000, but when I applied, the institutional loan I saw was N120,000. Now I owe 120k but was paid 79k, how come?
“Also, the upkeep loan was to support indigent students but has been delayed for months now.”
She however advised that the monthly stipend be upwardly reviewed especially in light of the current cost of commodities.
Similarly, another 300-Level student of LASUSTECH, Ibrahim Oluwakemi Fatimo, noted that she first heard about the scheme from one of her associations.
“It was announced in our Epe federation and then in our department. I was motivated when they said they’ll pay our school fees and that would help me a lot.
“I eventually applied, and it was so smooth as I encountered no difficulties. It has been helpful, from the school fee payment down to the upkeep,” she declared.
However, she also complained about the late disbursement of the upkeep funds, saying: “About this last payment (March), we were paid twice in the month of March. She advocated for both increment and timely disbursement of the upkeep funds.
In the same vein, Akilo Rasheedat, a 200-Level student of the same institution suggested that the fund disbursements should be faster, adding that the delay of such is causing untold hardship for students.
Speaking on the gains of the scheme, she said: “It has made me to have more financial independence somewhat, though it’s not much but it helps me in settling one or two things.
“I heard about NELFUND in my school and what motivated me to apply was the constant advertisement about the scheme and how helpful it could be in supporting less privileged students. My application was smooth, and surprisingly, the website was user friendly.
“Additionally, from a first person point of view, I want to express my gratitude to the Federal Government for this initiative, because it has positively impacted me, easing my financial burdens and allowing me to concentrate fully on my academics.
“Although when I first heard of it, I thought it was another bogus promise of the government, but I reluctantly applied nonetheless, and I was surprised to discover it was real.
“May I therefore use this medium to appeal that the initiative be sustained beyond this formative years as it is playing a crucial role in this critical time in the Nigerian history where economic crisis is currently reigning supreme.”
Abubakar Itopa, a graduate of Bayero University Kano(BUK)Kano, thanked the Federal Government for the scheme.
He said: “Many of my fellow students have benefitted from the loan scheme. Those who applied have given their testimony about it. I am very happy because I have never seen a programme as successful and helpful as NELFUND for students.
“I appreciate the Federal Government for this wonderful development and I know they can still do better. If this can stand then they can still do much to ensure most younger ones at home, not financially stable, can go to higher institutions and get a degree.”
A 300-Level student at University of Ilorin (UNILORIN) said: “When the Nigerian Education Loan Fund (NELFUND) initiative was launched, it was widely embraced because everyone saw it as a welcome development as the objective was to ease the burden of tuition and upkeep for students across tertiary institutions in Nigeria.
However, there is need for accountability, and in depth reform to address issues of inconsistent payment.”
Senior Special Assistant to the President on Student Engagement, Comr. Asefon Sunday, in a statement applauded the president for his unwavering commitment to students.
He said: “This visionary initiative, NELFUND, has helped to bridge socio-economic gaps, making quality education accessible to all, regardless of background.
“We extend our heartfelt appreciation to Mr. President for his unwavering support for education and his steadfast commitment to empowering the next generation. Your leadership continues to inspire millions across the nation.
“To all stakeholders in the education sector. Thank you for your dedication and collaboration in achieving this remarkable milestone. May our collective efforts continue to transform lives and shape a brighter future for Nigeria..
“And to the hardworking MD of NELFUND and his relentless team, who have been traversing the nation to bring this vision to life we salute you.
