The Nigerian Education Loan Fund (NELFUND) has reached another historic milestone as it confirmed the disbursement of ₦140.88 billion to 788,947 students across tertiary institutions nationwide. This update marks the most extensive rollout of financial support since the scheme was launched and reflects the government’s strongest push yet to expand educational access for young Nigerians.
According to the official data released by the Fund, the disbursement covers both tuition payments made directly to institutions and upkeep allowances transferred to student beneficiaries. The body noted that tuition makes up the larger share, while upkeep allowances account for a significant portion aimed at reducing the financial burdens students face, especially in the current economic climate.
The announcement also revealed that a total of 1.19 million applications have been received since the student-loan portal opened, with 788,947 cleared as eligible and successfully funded. The student-loan dashboard further showed that 262 tertiary institutions, including universities, polytechnics, colleges of education, monotechnics and other specialized schools, have so far been fully onboarded into the scheme.
This latest distribution is the culmination of a rapid expansion process that began in mid-2024. Earlier in the year, the total beneficiaries were slightly above 298,000, with just over ₦56 billion disbursed at the time. By October 2025, the figure had risen significantly to more than 624,000 beneficiaries and over ₦116 billion disbursed. The current leap to nearly 789,000 beneficiaries underscores the acceleration of the scheme, driven by improved verification processes, faster institutional onboarding and growing awareness among students.
The Fund emphasized that the loan remains interest-free. Repayment will not begin until beneficiaries have completed the National Youth Service Corps (NYSC) programme and secured employment. Repayments are structured as a small percentage deduction from monthly earnings, a feature the Fund describes as student-friendly and designed to avoid future financial pressure on young graduates.
NELFUND officials have continued to advocate for transparency and urged institutions to adhere strictly to the guidelines for receiving and applying tuition payments. In previous months, concerns had been raised about some institutions failing to promptly acknowledge tuition payments made on behalf of students, or in some cases, attempting to request additional fees from beneficiaries. The Fund warned that such actions violate the core purpose of the scheme, which is to eliminate financial barriers and ensure that no student is excluded from education due to inability to pay.
Despite the remarkable progress, the Fund acknowledged that some challenges still exist. These include occasional delays in upkeep allowance payments, data-verification mismatches and the need to onboard more institutions fully into the digital system. However, NELFUND said ongoing improvements, especially in biometric verification and inter-institutional data sharing, have significantly reduced processing time and reduced the number of pending applications.
The impact of the scheme is already evident across Nigeria. For many students, especially those from low-income families, the tuition support has removed the anxiety of school fees, while the upkeep allowance is easing the burden of food, transportation and accommodation costs. The data also indicates that the scheme is reaching students across all geopolitical zones, including rural communities that previously had limited access to education-finance opportunities.
Beyond its immediate benefits, education analysts believe the scheme could significantly reshape Nigeria’s tertiary-education landscape. By widening access to funding, dropout rates may decline, overall enrolment levels could rise and students who abandoned school due to financial constraints may now return. The scheme is also expected to help institutions stabilize revenue flows, enabling them to plan better and execute campus improvements without relying solely on erratic tuition payments.
However, several questions remain—particularly about future expansion. Many stakeholders have called for the scheme to include postgraduate students, noting that Nigeria urgently needs to improve its research output and train more advanced-level professionals. Others have advocated for the inclusion of private-institution students, arguing that a considerable number of low-income families also struggle within that sector.
As the programme enters its next phase, attention will turn to how repayment will be handled once beneficiaries start graduating in large numbers. The Fund has repeatedly assured the public that repayment will be simple, transparent and painless, and that graduates who remain unemployed will not be penalized or pressured until they secure legitimate income.
