NELFUND disburses N242.4bn in student loans, reaches 1.38 million beneficiaries

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Key points

• Over 1.38 million students have benefited from the loan scheme.
• Total disbursement hits N242.4 billion across tuition and upkeep.
• More than 1.77 million applications received since inception.

Main story

The Nigerian Education Loan Fund has disbursed a total of N242.4 billion under its student loan scheme, benefiting 1,388,592 students across the country.

According to the fund’s latest daily status report released on Monday, the scheme has recorded 1,778,854 applications since its launch, with 353 new applications added within the last reporting period.

NELFUND disclosed that N157.46 billion has been paid directly to 288 beneficiary institutions as tuition fees, while N84.95 billion has been disbursed to students as upkeep allowances.

The scheme was established under the Student Loan (Access to Higher Education) Act, signed into law by President Bola Ahmed Tinubu, to expand access to higher education through interest-free loans.

The issues

Access to higher education in Nigeria has long been constrained by financial barriers, with many students unable to meet rising tuition and living costs. While the loan scheme aims to bridge this gap, concerns remain around sustainability, repayment compliance, and institutional capacity to manage the programme effectively.

What’s being said

NELFUND described the disbursement as a significant milestone in improving access to tertiary education, noting that the dual structure of tuition payments and upkeep allowances is designed to support both academic and living expenses.

Under the framework, beneficiaries are expected to begin repayment two years after completing the National Youth Service Corps programme, ensuring a grace period before financial obligations commence.

What’s next

The fund is expected to continue processing applications and expanding coverage as more students enrol in the scheme. Attention is also likely to shift toward monitoring repayment mechanisms and ensuring long-term sustainability.

Bottom line

With over N242 billion disbursed and more than a million beneficiaries reached, the NELFUND scheme marks a major step in widening access to higher education, though its long-term success will depend on effective management and repayment compliance.