Nigeria’s ambitious student loan programme has reached a defining milestone as the Nigeria Education Loan Fund (NELFUND) confirmed the release of ₦154 billion to support over 788,947 students enrolled in public tertiary institutions across the country. The scale of the disbursement marks one of the most extensive education-financing interventions in Nigeria’s history, signaling a renewed federal push to break long-standing financial barriers that have kept millions of qualified young Nigerians out of higher education.
The announcement underscores how rapidly the scheme has expanded since becoming fully operational, as well as the growing demand among students grappling with rising tuition costs and living expenses in a challenging economic climate.
A Massive Financial Commitment to Education
According to NELFUND, the ₦154 billion disbursed so far has been strategically divided to address both academic and welfare needs of students.
A substantial portion of the funds has been paid directly to public universities, polytechnics, and colleges of education to cover approved tuition fees. This approach ensures that institutions receive payments transparently, while students are shielded from upfront financial pressure.
In addition, a significant share of the funds has been allocated to monthly upkeep support, with eligible students receiving ₦20,000 per month to help offset basic living costs such as accommodation, feeding, transportation, and learning materials. For many beneficiaries, this stipend represents the difference between staying in school and dropping out.
Nearly 800,000 Beneficiaries Across 262 Institutions
NELFUND confirmed that beneficiaries cut across 262 public tertiary institutions nationwide, reflecting broad geographic and institutional coverage. From federal universities to state polytechnics and colleges of education, the loan scheme is increasingly becoming a nationwide safety net for students from diverse socio-economic backgrounds.
While more than 1.26 million applications have been received since the portal opened, only verified and eligible applicants have been approved so far. The difference between applications and beneficiaries, NELFUND explained, is due to ongoing verification, incomplete institutional confirmations, and duplicate submissions.
What Changed: The Revised Student Loan Law
The rapid growth of the scheme is closely tied to reforms introduced under the revised NELFUND Act, signed into law in April 2024. The updated legislation removed several restrictive conditions that had limited access under the previous framework.
Key changes include the removal of:
- The household income ceiling that capped eligibility.
- The requirement for guarantors.
- The absence of structured upkeep support in earlier versions of the law.
By eliminating these barriers, the revised law broadened access and made the programme more inclusive, particularly for students from low- and middle-income families.
Who Is Eligible for the Student Loan?
NELFUND outlined clear eligibility requirements designed to maintain transparency and fairness in the system. Applicants must:
- Be Nigerian citizens.
- Have secured admission into a public tertiary institution through JAMB.
- Possess a valid National Identification Number.
- Own a verifiable bank account for stipend payments.
For newly admitted students who are yet to receive matriculation numbers, JAMB registration numbers are temporarily accepted to prevent unnecessary delays.
A Fully Digital, Transparent Process
One of the defining features of the scheme is its fully online application and disbursement system. From registration and verification to payments, the process is digital, reducing human interference and opportunities for abuse.
NELFUND maintains an electronic audit trail for every transaction, allowing students and institutions to track approvals, payment dates, and disbursed amounts. Daily updates are also published to reinforce public accountability.
Repayment Terms Designed to Protect Graduates
Unlike traditional loans, the student loan scheme is interest-free, with repayment structured to avoid burdening graduates prematurely.
Repayment is scheduled to begin two years after completion of the National Youth Service Corps (NYSC) and only after the beneficiary secures gainful employment. This model is intended to give graduates time to stabilize financially before loan obligations begin.
Nationwide Sensitisation and Public Awareness
Beyond disbursement figures, NELFUND has intensified nationwide sensitisation efforts to drive awareness and address misconceptions about the programme. Engagements have reached over 105,000 students, as well as governors, traditional rulers, and community leaders.
Officials have repeatedly emphasized that the loan scheme is a non-partisan national initiative, designed to strengthen human capital development and reduce the education gap across regions and social classes.
Why This Matters for Nigeria’s Future
Education experts say the scale of the current disbursement reflects both the urgency of student financial needs and the long-term implications for Nigeria’s workforce. With nearly 800,000 students already benefiting, the programme has the potential to significantly reduce dropout rates, improve academic focus, and expand the pool of skilled graduates entering the economy.
For families strained by rising costs, the loan scheme is increasingly viewed not just as financial support, but as a critical investment in social mobility and national development.
Looking Ahead
As applications continue to rise, attention is now turning to sustainability, institutional compliance, and long-term repayment efficiency. Stakeholders are watching closely to see how the scheme evolves, how repayment is enforced post-graduation, and whether funding levels will continue to scale with demand.
What is clear, however, is that the ₦154 billion already released has reshaped the conversation around access to higher education in Nigeria. For hundreds of thousands of students, the student loan scheme is no longer a policy idea — it is a lived reality, offering renewed hope that financial hardship will no longer be the reason dreams of higher education are abandoned.
