Education
Student loan: More applicants hopeful as NELFUND credits accounts
Student loan: More applicants hopeful as NELFUND credits accounts
More students across several tertiary institutions in Nigeria are optimistic of benefiting from the next batch of disbursements of the Nigerian Education Loan Fund (NELFUND), Weekend Trust gathered.
The NELFUND, established by the Students Loan Act 2023 is managed and administered by the Central Bank of Nigeria (CBN) through the money deposit banks. It aims to facilitate the mobilisation of funds to provide interest-free loans to students of tertiary institutions.
Beneficiaries are expected to begin a repayment process of 10% of their salary to be deducted at source two years after the completion of the National Youth Service Corps (NYSC), while self-employed beneficiaries are required to remit the same of their monthly profit.
The disbursement of funds is made directly to the institutions bank accounts while successful applicants are entitled to a monthly stipend of N20,000 for upkeep if they so wish.
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Weekend Trust reports that in August, the NELFUND had released data that showed significant regional disparities in the registration, application and disbursement of funds with the South-east recording the lowest figure.
Netizens on X had accused NELFUND of neglecting universities in the South-east but the Fund refuted the claim, saying the management of tertiary institutions in the South-east had failed to respond to verification requests forwarded to them.
North-west leads in disbursement, South-west in institutions
The latest data released by NELFUND on November 7, shows that the South-west has the highest number of beneficiary institutions with 27 currently getting disbursements. This is followed by the North-west which has 18 institutions while the North-east has 16 and the South-south has 15 institutions. The North-central and South-east have 11 institutions each.
On the number of students by zone, the North-west has the highest number of students with 43,378 followed by North-east with 28, 782 and the South-west with 12,539. The North-central has 11,555 beneficiaries while the South-south has 5,837 and South-east has 4,073.
The breakdown of the funding by zones, also shows that the highest of N4,424,024,250 billion was paid to the 18 institutions in the North-west, followed by the16 institutions in the North-east which got N2,544,223,937 billion, then the 27 institutions in the South-west received N1,842,876,713billion. The 11 institutions in the North-central got N1,099,808,700 billion, while the15 in the South-south got N597,250,030 million and the 11 institutions in the South-east received 539,610,320 million.
Student loan: More applicants hopeful as NELFUND credits accounts
DAILY TRUST
Education
NELFUND Introduces Token System to Stop Double Payment of School Fees
NELFUND Introduces Token System to Stop Double Payment of School Fees
The Nigerian Education Loan Fund (NELFUND) has begun piloting a new token-based payment system designed to prevent students from paying their school fees twice and reduce complications associated with refunds.
The Managing Director of NELFUND, Akintunde Sawyerr, disclosed this on Wednesday, October 28, 2026, during a press briefing, explaining that the proposed arrangement would give beneficiaries greater control over the payment of their approved institutional fees.
Under the new system, students will be able to authorise payments directly to their respective institutions through a digital token linked to their schools, rather than having to rely solely on notifications after payments have been made.
The development comes as NELFUND continues to process applications under the Federal Government’s student loan scheme, with the agency reporting nearly 400,000 applications at the time of the briefing.
Sawyerr said the initiative was introduced to address situations in which students unknowingly paid fees that NELFUND had already settled on their behalf, resulting in duplicate payments and subsequent demands for refunds.
He explained that delays in communicating completed transactions had created confusion among beneficiaries, particularly those facing registration deadlines and other academic requirements.
According to him, a student might pay school fees independently because they had not been informed that NELFUND had already transferred the approved amount to their institution.
The student could subsequently discover that the fund had settled the same bill, leaving them to seek a refund from the institution.
Sawyerr described such incidents as genuine mistakes arising from communication gaps rather than deliberate wrongdoing.
The NELFUND chief executive said the new arrangement was intended to eliminate the problem by allowing students to initiate payments themselves once their approved funds were ready.
“We want to eliminate that need for refunds. So we’re placing the power of payment in the hands of the students,” he said.
How NELFUND’s New Token Payment System Will Work
Under the proposed arrangement, beneficiaries will receive notifications when their approved school fees are ready for payment. They will then be able to use an application on their mobile phones to authorise the transaction.
Once authorised, the funds will be transferred directly to the designated institution, with the token restricted to the school for which the payment was approved.
NELFUND said the arrangement would prevent students from transferring the approved tuition funds into their personal bank accounts or redirecting the money to another institution.
Sawyerr stressed that the system was not designed to hand cash directly to beneficiaries but to give them control over initiating payments while ensuring that the funds remained dedicated to their intended purpose.
“We’re not giving the students money, but we’re giving them power,” he said.
To illustrate how the arrangement would operate, he explained that a student with an approved institutional payment of ₦200,000 would only be able to authorise payment to the designated school’s account.
The money would not move until the student initiated the transaction, according to the explanation provided during the briefing.
NELFUND’s Executive Director, Mustapha Iyal, also clarified that the token should not be confused with a personal wallet or a mobile money account.
He explained that the token would be linked to a specific institution and would serve as a payment authorisation mechanism rather than an account from which beneficiaries could freely withdraw or transfer funds.
The restriction is intended to reduce the risk of misdirected payments while improving accountability in the administration of the student loan scheme.
NELFUND Reports Nearly 400,000 Applications
Iyal confirmed that the pilot phase of the tokenised payment system had commenced, disclosing that the fund had received close to 400,000 applications at the time of the briefing.
However, the figure represents applications received and should not be interpreted as the number of students whose payments have already been processed through the new system.
The officials did not announce a specific date for the full implementation of the token-based arrangement.
The pilot is expected to help the fund assess how the new payment process can improve coordination among beneficiaries, tertiary institutions and the agency.
For students, the effectiveness of the system will depend on timely notifications, accurate records of approved fees and efficient confirmation of payments by their institutions.
These measures will be particularly important for students who must meet school-fee deadlines to complete registration or participate in academic activities.
What the New System Means for Students
The proposed payment arrangement could reduce the uncertainty faced by beneficiaries who are unsure whether NELFUND has paid their school fees.
By allowing students to authorise transactions after receiving notification that their approved funds are ready, the system is intended to reduce the likelihood of duplicate payments and the administrative burden of recovering money from institutions.
It could also strengthen accountability by ensuring that approved tuition funds are used only for the institution and purpose for which they were authorised.
However, students should continue to confirm their payment status through the appropriate NELFUND and institutional channels and follow their schools’ official payment procedures while the pilot is being implemented.
The introduction of the token system does not mean students will receive approved tuition funds as cash in their personal bank accounts.
It is also important to distinguish institutional charges from upkeep allowances. The reported change concerns payments for school fees, while approved upkeep allowances remain subject to the existing disbursement arrangement.
NELFUND administers the Federal Government’s student loan scheme established under the Students Loans (Access to Higher Education) Act, 2024. The programme is intended to help eligible Nigerian students meet the financial demands of tertiary education through interest-free loans for approved educational expenses.
The success of the new system will depend on how effectively NELFUND and participating institutions communicate payment information, verify transactions and resolve outstanding issues as the pilot progresses.
NELFUND Introduces Token System to Stop Double Payment of School Fees
Education
NELFUND Warns Schools: Student Loans Are Voluntary, Not Compulsory
NELFUND Warns Schools: Student Loans Are Voluntary, Not Compulsory
The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions against compelling students to apply for the Federal Government’s student loan scheme, insisting that accessing the facility is voluntary and not a condition for studying in Nigerian institutions.
The clarification followed controversy over a directive reportedly issued by the Enugu State College of Education (Technical), Enugu, requiring all fresh and returning students to apply for and access the loan for the 2026/2027 academic session.
In a statement issued in Abuja on Wednesday, October 21, 2026, NELFUND said students should determine whether to apply based on their individual financial circumstances and genuine need for assistance.
The statement was signed by the fund’s Director of Strategic Communications, Oseyemi Oluwatuyi.
NELFUND explained that the student loan scheme was established to remove financial barriers to higher education, promote equal access to learning opportunities and ensure that eligible Nigerians were not denied education because of financial difficulties.
It stressed that students who could independently afford their educational expenses were under no obligation to apply for or access the facility.
“The student loan scheme is a support mechanism, not an obligation,” the fund stated.
NELFUND added that making the loan compulsory for every student, regardless of their financial circumstances, would defeat the purpose of the programme.
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According to the agency, its objective is not to encourage indiscriminate borrowing but to ensure that eligible students who genuinely require financial assistance can access support to pursue their academic ambitions.
The clarification comes amid concerns over an internal memorandum reportedly issued by the management of the Enugu State College of Education (Technical).
The memorandum, dated October 6, 2026, and signed by the institution’s Acting Registrar, Patrick A. Aneke, reportedly directed all students in its Nigeria Certificate in Education and degree programmes to apply for the loan for the 2026/2027 academic session.
It also instructed deans, directors, heads of departments and student representatives to communicate the directive to students and asked them to visit the institution’s NELFUND desk officer for assistance with applications.
Reports surrounding the directive indicated that students who failed to comply could face restrictions on taking examinations or continuing their studies, raising concerns about the implications of compelling students to take loans.
NELFUND’s clarification reinforces the distinction between making financial assistance available to eligible students and requiring every student to borrow, irrespective of whether they need the support.
The fund further explained that although its loans are interest-free, beneficiaries are required to repay them in accordance with the provisions of the Student Loans Act.
It therefore urged prospective applicants to understand the scheme’s terms and conditions and make informed decisions before applying.
NELFUND also called on tertiary institutions, student leaders and other stakeholders to provide accurate information about the programme and guide students who require financial assistance through the application process.
The agency reiterated its commitment to ensuring that financial hardship does not prevent eligible Nigerians from pursuing higher education.
The development has renewed attention on the implementation of the Federal Government’s student loan programme and the need for institutions to ensure that students understand both the benefits and repayment obligations associated with the facility.
NELFUND maintained that the scheme should remain an avenue for financial support for students who need it, rather than a compulsory borrowing arrangement imposed on the entire student population.
NELFUND Warns Schools: Student Loans Are Voluntary, Not Compulsory
Education
Tinubu Scraps Recruitment Waiver Requirement for Federal Universities
President Bola Ahmed Tinubu has exempted federal universities from the requirement to obtain recruitment waivers from the Office of the Head of the Civil Service of the Federation (OHCSF) before employing new staff, in a move aimed at strengthening institutional autonomy and easing recruitment bottlenecks in Nigeria’s tertiary education sector.
Tinubu announced the policy change on Saturday, October 17, 2026, at the maiden convocation ceremony of the Federal University of Health Sciences, Azare (FUHSA), in Bauchi State. He was represented at the event by the Executive Secretary of the Tertiary Education Trust Fund (TETFund), Sonny Echono.
The President, who serves as Visitor to all federal universities, said the reform was reflected in recent agreements signed between the Federal Government and university staff unions.
According to him, the decision would empower the Federal Ministry of Education and university governing councils to take responsibility for recruitment decisions and respond more effectively to their institutions’ staffing needs.
“This measure empowers the Federal Ministry of Education and university Governing Councils to discharge their respective responsibilities in staff recruitment, enabling institutions to respond more effectively to their legitimate manpower needs,” Tinubu said.
The removal of the waiver requirement is expected to reduce administrative delays that can hinder universities from filling vacant positions, replacing retiring employees and recruiting additional academic and non-academic personnel.
Under the previous arrangement, federal institutions could be required to obtain clearance from the OHCSF before recruiting new employees. Removing this requirement for federal universities is intended to give university authorities greater flexibility in addressing staffing shortages and managing their operations.
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However, the reform does not mean that universities are exempt from all public-sector recruitment rules or that appointments can be made without appropriate institutional procedures.
Tinubu said the policy formed part of his administration’s broader efforts to strengthen university autonomy, improve personnel management and create a more conducive environment for teaching, research, innovation and service delivery.
The President also disclosed that the Federal Government was working to improve personnel and payroll administration across tertiary institutions by migrating their staff from the Integrated Personnel and Payroll Information System (IPPIS) to the Government Integrated Financial Management Information System (GIFMIS).
He said the transition was intended to improve payroll efficiency, strengthen transparency and accountability, ensure timely and accurate salary payments, and accommodate the operational peculiarities of universities and other tertiary institutions.
The proposed changes come amid longstanding discussions about the autonomy of Nigerian universities, including their ability to manage staffing, finances and other internal administrative responsibilities.
For universities struggling with shortages of lecturers, researchers, laboratory personnel and other essential workers, the removal of the recruitment waiver requirement could make it easier to respond to vacancies, subject to available funding and applicable recruitment procedures.
Beyond recruitment and payroll reforms, Tinubu reaffirmed the Federal Government’s commitment to investing in tertiary education infrastructure, research and staff welfare.
He disclosed that FUHSA had received an initial ₦8 billion intervention through TETFund to support its establishment. He said the investment followed lessons from the COVID-19 pandemic, which exposed weaknesses in Nigeria’s healthcare system and highlighted the need to strengthen medical education and research capacity.
According to the President, further support would be channelled to the university through TETFund’s regular and special interventions, alongside allocations in the 2026 national budget for roads, lecture halls, laboratories and utility vehicles.
Tinubu also announced that ₦10 billion had been provided for the National Research Fund in 2026, urging universities, particularly specialised institutions such as FUHSA, to pursue research that addresses Nigeria’s pressing healthcare challenges.
On staff welfare, he said the Federal Government had signed agreements with academic and non-academic unions covering the payment of the Consolidated Academic Tools Allowance (CATA) and the Consolidated Non-Teaching Tools Allowance (CONTTA), effective January 1, 2026.
He said the agreements recognised the distinct but complementary contributions of teaching and non-teaching personnel to the effective running of tertiary institutions.
Tinubu further disclosed that 1,798 FUHSA students, representing 43 per cent of the institution’s student population, had secured support from the Nigerian Education Loan Fund (NELFUND) for the 2025/2026 academic session.
The President congratulated the university’s 50 pioneer graduates and urged them to apply their knowledge and professional skills to improving healthcare delivery, particularly for vulnerable Nigerians.
He also encouraged FUHSA to strengthen partnerships with international institutions, including the University of Miami, Boston University and Universiti Sains Malaysia, while ensuring that such collaborations translate into measurable improvements in teaching, research and healthcare services.
The recruitment reform is expected to attract attention from university administrators, lecturers, non-academic staff and prospective employees as institutions assess how the new arrangement will affect recruitment timelines and staffing priorities.
Its impact will ultimately depend on how effectively university governing councils and the Federal Ministry of Education implement the policy, alongside adequate funding, transparent recruitment processes and effective oversight.
Tinubu Scraps Recruitment Waiver Requirement for Federal Universities
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