the Nigerian Education Loan Fund (NELFUND) has announced the disbursement of ₦116.4 billion in student loans to over 624,000 Nigerian students across public tertiary institutions. This monumental achievement comes just months after the fund officially launched its application portal in May 2024, following the enactment of the Student Loan (Access to Higher Education) Act signed by President Bola Ahmed Tinubu.
The initiative, designed to eliminate financial barriers and promote inclusive education, has already begun transforming the lives of students from low- and middle-income families. NELFUND’s latest progress report highlights not only the scope of the programme’s impact but also its strategic distribution of funds between tuition support and upkeep allowances for students nationwide.
Breakdown of Disbursement
Since the launch of its operations on May 24, 2024, NELFUND has recorded a massive inflow of applications and successfully disbursed loans in record time.
| Category | Amount (₦) | Description |
|---|---|---|
| Total Disbursed Amount | ₦116.4 Billion | Overall student loan disbursement since inception |
| Total Number of Applicants | 929,805 | Applications received via the official portal |
| Total Beneficiaries | 624,535 | Students approved and funded across public tertiary institutions |
| Funds Sent to Institutions (Tuition) | ₦65.3 Billion | Paid directly to 239 accredited universities, polytechnics, and colleges of education |
| Upkeep Allowances to Students | ₦51.1 Billion | Paid directly to students’ bank accounts to support living expenses |
| Application Window (2025/2026) | Oct. 23, 2025 – Jan. 31, 2026 | Official period for submission of new loan applications |
According to NELFUND, disbursements were carefully structured to cover both tuition and living expenses, ensuring that no Nigerian student drops out of school due to financial hardship.
How the NELFUND Loan System Works
The NELFUND student loan programme was established under the Student Loan (Access to Higher Education) Act to provide interest-free financial support to Nigerian students enrolled in public universities, polytechnics, and colleges of education.
The fund operates on a dual-disbursement model:
- Tuition Fees are paid directly to the student’s institution to prevent misuse of funds and guarantee that the payment goes toward actual educational costs.
- Upkeep Allowances are credited directly to students’ personal accounts to cover living expenses such as accommodation, transportation, and feeding.
This system promotes transparency, accountability, and efficiency — ensuring that every kobo reaches the intended beneficiaries.
Application Process and Eligibility
The ongoing application for the 2025/2026 academic session began on Thursday, October 23, 2025, and will close on Saturday, January 31, 2026.
Eligibility Requirements:
- Applicants must be Nigerian citizens enrolled in a public tertiary institution (university, polytechnic, or college of education).
- Applicants must provide their admission number, JAMB registration number, or matriculation details where applicable.
- Students must have no record of loan default or criminal conviction.
- Applicants must demonstrate financial need through supporting documentation.
How to Apply:
- Eligible students can complete the application online through the official NELFUND portal.
- Applicants are required to upload relevant documents, including identification details and admission proof.
- Successful applicants will receive confirmation via email or SMS, after which disbursement begins directly to the approved institution and the applicant’s account.
NELFUND’s Mandate and Vision
NELFUND’s primary objective is to bridge the financial gap in tertiary education by making loans accessible to every Nigerian student who meets the eligibility criteria. Beyond financial assistance, the fund aims to ensure that no student abandons their academic pursuit due to economic hardship.
The Managing Director of NELFUND emphasized that the initiative reflects President Tinubu’s commitment to fostering equal educational opportunities across the country. The loan programme, he explained, is not a temporary relief effort but a sustainable social investment that will empower young Nigerians to acquire education, develop skills, and contribute productively to national development.
Impact Across Institutions
So far, NELFUND has partnered with 239 tertiary institutions across Nigeria, ensuring wide coverage and efficient delivery of funds. These institutions include federal and state universities, polytechnics, and colleges of education.
The disbursement model allows for institutional verification, meaning every payment undergoes scrutiny and approval to prevent errors or misuse. Many students have already attested to the relief the loans have provided, enabling them to pay outstanding tuition fees, secure accommodation, and focus more on their studies.
Repayment Plan and Post-Graduation Support
One of the most appealing aspects of the NELFUND scheme is its interest-free repayment structure. Students are not required to begin repayment until they have secured gainful employment after graduation.
Upon employment, a small percentage of the beneficiary’s income will be deducted monthly to repay the loan. This model aligns with global best practices in student loan management and ensures that graduates can transition into repayment without financial strain.
In addition, NELFUND has introduced an Employment Support Initiative, designed to connect graduates with potential employers and career opportunities — further enhancing the sustainability of the programme.
What This Means for Nigerian Students
For millions of Nigerian students, especially those from low-income families, NELFUND’s loan initiative represents a lifeline and a path toward educational equity. By covering both tuition and living expenses, the fund effectively removes one of the greatest barriers to higher education in Nigeria — the cost.
Students in universities like FUTMINNA, UNILAG, UNN, ABU, and other federal and state institutions can now pursue their academic dreams without fear of dropping out due to financial constraints.
Moreover, the transparent digital application process has simplified access to funding, reducing bureaucratic bottlenecks that often discourage applicants.
Challenges and the Road Ahead
While the progress is commendable, experts have called for continuous oversight and transparency to ensure the scheme remains sustainable. Proper tracking, repayment enforcement, and continuous stakeholder engagement will be essential for long-term success.
NELFUND has pledged to strengthen its monitoring systems and work closely with tertiary institutions to avoid fraud, duplication, or misappropriation of funds.
As the application window for the 2025/2026 session remains open, students are encouraged to apply early and follow all procedures accurately to secure their share of this transformative initiative.
