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UPDATED: NELFUND receives 30,000 applications for student loan

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NANS exposes 43 institutions over alleged failure to refund NELFUND tuition fees

UPDATED: NELFUND receives 30,000 applications for student loan

The Managing Director/Chief Executive Officer, Nigeria Education Loan Fund (NELFUND), Akintunde Sawyerr, has said 60, 000 students from Federal tertiary institutions have registered for the student loan scheme since the launch of the portal last week Friday.

Sawyerr, however, said that 30,000 students have successfully applied for the loan.

He said the agency will start receiving applications from students of state-owned tertiary institutions in three weeks.

The NELFUND boss urged heads of the state – owned institutions to start uploading details of their students on its portal.

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Sawyerr disclose this at an ongoing press conference in Abuja on Thursday.

The agency is working with 126 tertiary institutions for the loan scheme.

Sawyerr said over 9.5 million people have visited the portal since it was launched last week.

The student loan scheme will take off with 1.2m students as beneficiaries.

The loan, which is an equivalent of the tuition fees of the benefitting students, will be paid directly to their institutions.

But stipends would be paid directly to beneficiaries on a monthly basis to assist them buy other things that can make them comfortable while pursuing their education.

UPDATED: NELFUND receives 30,000 applications for student loan

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NELFUND Loan: How Parents Can Stop Children from Collecting School Fees Twice

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NELFUND Loan: How Parents Can Stop Children from Collecting School Fees Twice

NELFUND Loan: How Parents Can Stop Children from Collecting School Fees Twice

Parents and the National Association of Nigerian Students (NANS) have offered suggestions on how to prevent students from collecting money from their parents for tuition fees already covered by the Federal Government’s student loan scheme.

The recommendations followed concerns raised by the Nigerian Education Loan Fund (NELFUND) over alleged cases of beneficiaries collecting financial support from the agency while continuing to demand school fees from their parents without disclosing that their tuition had already been paid.

The practice, popularly described as double-dipping, has prompted calls for stronger verification, improved communication and greater transparency in the administration of the student loan programme.

NELFUND Managing Director, Akintunde Sawyerr, raised the concern during a media briefing in Abuja, where he announced plans to introduce new measures to prevent the misuse of the scheme and eliminate disputes arising from duplicate tuition payments.

Sawyerr said the fund had identified cases in which students benefited from NELFUND’s financial support but continued to rely on their parents to pay tuition fees already covered by the government.

He described the practice as unacceptable, warning that the agency would take steps to end it.

He also explained that some duplicate payments occurred because students were not promptly informed that NELFUND had already transferred their tuition fees to their institutions.

Consequently, some beneficiaries independently paid their school fees because they were unaware that the government-backed fund had settled the bills.

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To address the problem, NELFUND is introducing a token-based payment system that will allow students to authorise tuition payments directly to their institutions through a mobile application.

Under the proposed arrangement, students will receive notifications when their approved loan funds are ready for payment and can authorise the transactions through their phones.

The money will be transferred directly to the designated institutions rather than being made available for withdrawal into students’ personal bank accounts.

Sawyerr said the arrangement would eliminate unnecessary refund complications and give beneficiaries better control over the payment process.

He stressed that the token system would prevent students from redirecting approved tuition funds to personal accounts or other institutions.

NELFUND is also planning a parental verification portal through which parents can check whether their children’s school fees have been paid under the loan scheme.

According to reports, the proposed platform will allow parents to use their children’s matriculation numbers to confirm payment status without necessarily accessing the specific amounts involved.

The initiative is expected to help parents establish whether tuition obligations have already been settled before making additional payments.

Meanwhile, NANS has welcomed the token payment arrangement, describing it as a measure capable of improving transparency, accountability and efficiency in the student loan programme.

The association’s Public Relations Officer, David Obidah, said the innovation could address problems associated with duplicate transactions, delayed payment confirmations and refund disputes.

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He urged NELFUND to ensure that the system remained accessible and reliable, while calling on tertiary institutions to reconcile payments promptly, update students’ records and resolve discrepancies without unnecessary delays.

Obidah also emphasised the importance of proper communication between the fund, students, institutions and parents to prevent misunderstandings about tuition payments.

On the question of parental involvement, NANS has maintained that parents should be informed when their children apply for or receive student loans, but their consent should not become a compulsory condition for accessing the scheme.

The association argued that making parental approval mandatory could create unnecessary barriers for students whose parents are unavailable, financially incapable or unwilling to support their education.

It therefore favours a structured notification system through which parents and guardians can receive information about loan applications and approvals without having the power to determine whether eligible students can access the financial support.

Parents have also been advised to take a more active role in monitoring their children’s educational finances rather than making tuition payments without first confirming whether the students have benefited from NELFUND.

An official of the Federal Ministry of Information and National Orientation, Dr Helen Nsirim, had earlier advised parents to verify the list of NELFUND beneficiaries before paying their children’s school fees.

She warned that some students allegedly concealed their beneficiary status from their parents to continue collecting tuition money despite receiving government assistance.

Nsirim urged parents to check with their children’s institutions and use available NELFUND information channels to establish whether their fees had been covered.

She also called on NELFUND to improve transparency by making beneficiary information accessible through appropriate channels.

Beyond the recommendations, stakeholders have stressed the need for tertiary institutions to maintain accurate payment records and notify students promptly whenever tuition fees are received from NELFUND.

This is considered important because delays in updating institutional records can leave beneficiaries uncertain about their financial status and expose them to unnecessary duplicate payments.

NELFUND has also announced plans to organise re-education workshops across Nigeria’s six geopolitical zones to explain the revised payment procedures to students, parents and tertiary institutions.

The workshops are expected to address misunderstandings about institutional fees, upkeep allowances, payment confirmation and the responsibilities of different stakeholders.

The development comes as the Federal Government continues to expand its interest-free student loan programme, established under the Student Loans (Access to Higher Education) Act, 2024, to reduce financial barriers to tertiary education.

As of October 3, 2026, NELFUND had reported more than N372 billion in loan disbursements to beneficiaries across hundreds of tertiary institutions nationwide.

The growing scale of the programme has increased the need for effective monitoring, accurate financial records and stronger accountability mechanisms to ensure that public funds reach their intended beneficiaries.

While NELFUND’s proposed reforms are expected to address some of the challenges, their effectiveness will depend on timely implementation, cooperation from tertiary institutions and adequate communication with students and their families.

For parents, the immediate advice is to verify tuition payment status before paying school fees. Students, on their part, are expected to disclose their NELFUND beneficiary status and avoid collecting money for educational expenses already covered by the government.

NELFUND Loan: How Parents Can Stop Children from Collecting School Fees Twice

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University Funding Crisis: States Beg FG to Take Over Cash-Strapped Institutions

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University Funding Crisis: States Beg FG to Take Over Cash-Strapped Institutions
Minister of Education, Dr. Maruf Tunji Alausa
University Funding Crisis: States Beg FG to Take Over Cash-Strapped Institutions

Some state governments have appealed to the Federal Government to take over their universities amid mounting financial difficulties and growing concerns about their ability to sustain the institutions.

The Minister of Education, Dr Tunji Alausa, disclosed this in a memorandum addressed to Senate President Godswill Akpabio on November 2, 2026, while seeking legislative support for a seven-year moratorium on the establishment of new federal universities, polytechnics and colleges of education.

According to the minister, some state governments have approached the Federal Government because they can no longer adequately meet the financial and administrative responsibilities associated with running their universities.

Although Alausa did not identify the states involved or disclose the number of institutions affected, he cited the experiences of Ekiti and Imo states as examples of the difficulties associated with establishing and maintaining multiple tertiary institutions without sustainable funding arrangements.

The disclosure comes amid growing concerns over the financial sustainability of public universities in Nigeria, recurring industrial disputes involving university lecturers, deteriorating infrastructure and demands for improved staff welfare.

Alausa argued that the country’s immediate priority should be strengthening existing institutions rather than continuously establishing new ones without adequate financial provisions.

He warned that expanding the number of universities without addressing their funding challenges could further weaken the quality of tertiary education and undermine academic standards.

The minister also highlighted the Federal Government’s outstanding financial commitments to the revitalisation of public universities.

According to the memorandum, under the 2013–2018 Federal Government agreement with the Academic Staff Union of Universities (ASUU), the government committed ₦1.3 trillion to university revitalisation.

However, only ₦250 billion was released between 2013 and 2021, representing less than 20 per cent of the original commitment.

Alausa further disclosed that of the additional ₦150 billion approved in 2025 for the Needs Assessment Intervention, only ₦50 billion was initially released.

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He said the funding gaps demonstrated the difficulty of meeting existing obligations and raised questions about the government’s capacity to sustain additional institutions without guaranteed budgetary provisions.

The minister identified inadequate lecture halls, overcrowded classrooms, insufficient laboratories, shortages of qualified lecturers, accommodation deficits and deteriorating facilities as some of the major challenges confronting public tertiary institutions.

He maintained that spreading limited resources across more universities without addressing existing deficiencies could further weaken the sector.

Alausa also recalled that Ekiti State consolidated three state-owned universities into a single institution, Ekiti State University, Ado-Ekiti, in 2011.

He cited institutional reviews and integration exercises undertaken by Imo State following the establishment of several tertiary institutions under previous administrations.

According to him, these experiences demonstrate the risks of establishing universities without proper feasibility studies and sustainable funding arrangements.

He warned that institutions created without adequate financial planning could eventually become liabilities for successive administrations, forcing governments to undertake costly mergers, restructuring or closures.

The minister also referenced international examples, including Australia, Finland, Japan, the United States and South Africa, where institutional mergers and consolidation have been used to address funding constraints, duplicated academic programmes and administrative inefficiencies.

He argued that Nigeria could adopt similar measures to improve governance, strengthen research capacity and ensure more efficient utilisation of available resources.

Beyond the requests for federal takeovers, Alausa urged the National Assembly to support a seven-year moratorium on establishing new federal tertiary institutions.

He said the Federal Executive Council (FEC) had approved the moratorium at its meeting on August 13, 2025, as part of efforts to address the proliferation of public tertiary institutions.

However, the minister expressed concern that lawmakers were still considering bills seeking to establish additional institutions despite the policy.

He acknowledged the constitutional powers of the National Assembly to initiate and pass legislation but urged lawmakers to consider national education priorities, demonstrable needs and the financial implications of establishing new institutions.

Alausa stressed that setting up a university involved more than passing an enabling law, as it required land acquisition, take-off grants, infrastructure, recruitment of academic and non-academic personnel, equipment, utilities and recurrent expenditure.

He warned that institutions established without credible long-term funding arrangements could exist only on paper, without the resources required to deliver quality education.

The minister clarified that the proposed seven-year moratorium was not intended to permanently deny Nigerians access to tertiary education or prevent future expansion where compelling national needs existed.

Rather, he said the measure would allow the government to consolidate existing investments, improve academic standards and address infrastructure and staffing deficiencies.

The development comes against the backdrop of recurring industrial disputes between state governments and university lecturers over salaries, allowances, earned academic benefits and the implementation of agreements with ASUU.

The union has consistently maintained that state governments must honour applicable agreements with lecturers in their institutions rather than rely solely on commitments made by the Federal Government.

The disputes have disrupted academic activities in some institutions and raised questions about the ability of certain state governments to provide stable funding for university education.

Meanwhile, the Federal Government announced on October 25, 2026, that it had disbursed ₦38.93 billion to 166 public tertiary institutions under the Needs Assessment Revitalisation Fund.

The allocation covered 79 universities, 46 polytechnics and 41 colleges of education, with the money earmarked for approved infrastructure and teaching-related projects.

Despite the intervention, Alausa’s latest memorandum suggests that substantial funding and infrastructure challenges remain across Nigeria’s tertiary education sector.

The minister appealed to Senate President Akpabio, Senate Majority Leader Michael Opeyemi Bamidele and other lawmakers to support the proposed moratorium.

He maintained that the success of Nigeria’s education system should be measured by the quality of its institutions, teaching, research and graduates rather than simply the number of universities established.

 

University Funding Crisis: States Beg FG to Take Over Cash-Strapped Institutions

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NELFUND Introduces Token System to Stop Double Payment of School Fees

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NELFUND Loan: How Parents Can Stop Children from Collecting School Fees Twice

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

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