NELFUND's N107.7bn milestone eclipsed by growing applicant frustration

...as NELFUND blames applicants inconsistent records for delays

By Obasola Olatunde

The Nigerian Education Loan Fund (NELFUND) has marked a significant achievement in its mandate to finance tertiary education, reporting a total disbursement of N107.7 billion in interest-free student loans to 581,878 undergraduates as of October 4, 2025.

This figure, released in the latest official statistics, confirms the successful execution of the Student Loans (Access to Higher Education) Act, 2024, designed to boost access for financially disadvantaged students in Nigeria’s public institutions.

The financial breakdown reveals that N61.3 billion was directed to 228 participating tertiary institutions to cover tuition and institutional fees, with the remaining N46.3 billion paid directly to students as upkeep allowances.

The scheme's expansion has been substantial, soaring from N45.1 billion and approximately 192,906 beneficiaries in March 2025, to N56.85 billion by May, and reaching N86.3 billion by August before hitting the current N107.7 billion mark. The number of participating institutions similarly grew from 198 in May to 228 by October.

Despite the massive infusion of funds, the initiative is increasingly overshadowed by a chorus of complaints from thousands of students unable to access the promised financial support. Many applicants report receiving no response months after completing their applications.

A 300-level student at the University of Lagos, speaking anonymously to Nigerian NewsDirect, illustrated the administrative quagmire, stating she submitted her documents and received confirmation in July, yet her name was omitted from the final disbursement list.

This difficulty, she noted, has left her and many peers "stranded and having financial difficulties in paying our fees." Similar frustrations over perceived lack of transparency and poor communication have been echoed across campuses nationwide.

NELFUND officials, including Adesola Odukoya, acknowledged the concerns, explaining that the phased disbursement prioritises verified applicants whose institutions have completed the necessary validation process.

The agency attributes the delays primarily to data inconsistencies between student applications and institutional records, alongside incomplete documentation.

While a senior official assured that the due diligence process, carried out in batches, will eventually reach all eligible students, the continuing verification bottlenecks remain a serious point of contention.

Anticipating the opening of the loan application portal for the 2025/2026 academic session, NELFUND has taken a proactive step by directing all accredited tertiary institutions to urgently update and upload comprehensive records of both new and returning students.

Director of Strategic Communications, Oseyemi Oluwatuyi, emphasised that only students whose details have been duly uploaded and verified by their respective institutions will be eligible to apply, making this collaboration critical to a seamless rollout. She urged institutions to designate responsible officers to ensure accurate data capture, especially by using unique identifiers like admission numbers to prevent recurring verification delays.

The urgency stems from the results of the 2024/2025 cycle, where the loan application portal, which closed on September 30, received 846,462 applications. Out of this total, 581,878 were approved and funded, leaving a sizable remainder under review, pending the complex verification process involving both institutions and government agencies intended to safeguard against fraud.

The interest-free nature of the NELFUND loan, which features a repayment structure commencing two years after the completion of the National Youth Service Corps (NYSC), has earned widespread acclaim. Repayment involves an automatic 10% deduction of monthly salary for the employed, or a direct remittance of the same percentage for the self-employed, creating a crucial recovery mechanism for the fund’s sustainability.

Education experts commend the scheme for its potential to reduce dropout rates and improve retention in public tertiary institutions. However, Dr. Aisha Bello, a higher education analyst from The Federal Polytechnic Ilaro, cautioned that this landmark reform's credibility is dependent on its execution.

She warned that the "growing frustration among applicants who have not received their loans could erode public confidence if not urgently addressed," adding that a lack of fairness, transparency, and speed could ultimately defeat the purpose of alleviating student hardship.

As the fund continues to manage disbursements and prepares for the new academic session, attention pivots to NELFUND’s strategies for sustaining financing, ensuring efficient loan recovery, and the anticipated expansion of coverage to include private institutions in the future. For the time being, the vast number of beneficiaries stands alongside thousands of anxious students still waiting for their access to Nigeria's most ambitious student funding initiative in recent memory.