Federal Government Student Loan Update: NELFUND Releases ₦161bn to Over 864,000 Students

The Nigerian Education Loan Fund has disbursed a total of ₦161.97 billion to 864,798 students across the country since the launch of its student loan portal, as part of the Federal Government’s drive to expand access to tertiary education through sustainable financing.

The Managing Director of the Fund, Akintunde Sawyerr, disclosed this during a media briefing in Abuja while presenting an update on the progress, impact and operational challenges of the student loan scheme.

According to him, the education loan programme was established to ensure that no qualified Nigerian student is denied access to higher education due to financial limitations. He noted that the initiative aligns with the Federal Government’s broader agenda to promote inclusive growth and human capital development.

Sawyerr revealed that the Fund has received a total of 1,361,011 loan applications from students in tertiary institutions nationwide. Of the ₦161.97 billion disbursed so far, ₦89.94 billion was paid directly to 263 tertiary institutions to cover tuition and other institutional charges, while ₦72.03 billion was paid directly to students as upkeep allowances.

He explained that the figures reflect the tangible impact of the programme on students and families, describing the disbursements as evidence that financial barriers to education are being steadily removed.

The Managing Director added that over the past year, the Fund carried out extensive sensitisation and engagement activities across tertiary institutions to improve awareness and access to the student loan scheme. He stated that the next phase of engagement would expand to parents, guardians, traditional rulers and faith based institutions in order to deepen public understanding and trust in the programme.

Providing an update on upkeep payments, Sawyerr disclosed that a reconciliation exercise conducted after the 2024/2025 academic session revealed outstanding upkeep allowances owed to 11,685 students, amounting to ₦927.98 million. He clarified that the unpaid amounts were not due to withheld funds or policy failure, but resulted from technical and operational issues such as network disruptions, failed transactions and unvalidated bank account details.

He said management approved a one time reconciliation process to resolve the outstanding cases, which involved direct engagement with affected students, a defined grace period for updating bank details, multi layer verification procedures and prompt payment upon successful validation.

On the sustainability of the student loan programme, Sawyerr stated that recent reforms to the student loan law, the removal of guarantor requirements, the inclusion of upkeep allowances and the Fund’s capacity to raise and invest funds are key pillars supporting its long term viability. He also disclosed that the Fund is exploring partnerships with philanthropists, corporate organisations and government agencies, citing a ₦20 billion collaboration with the Ministry of Education on Technical and Vocational Education and Training as an example.

Also speaking at the briefing, the Executive Director of Operations, Mustapha Iyal, said the outstanding upkeep payments represented a small fraction of beneficiaries from the 2024/2025 academic session. He explained that many of the issues were linked to incorrect information provided by applicants during the application process.

According to him, the Fund has engaged institutions nationwide to validate student data, with feedback already received from over 100 institutions. He added that payment of the outstanding upkeep allowances is expected to commence shortly.

Iyal further disclosed that applications for the 2025/2026 academic session opened in November 2025, with more than 200 institutions submitting updated student data. He said about 280,000 applications have been received so far, and loans have already been disbursed to over 150,000 students.

He added that upkeep payments for the new academic session will begin in January, noting that upkeep allowances are tied to active academic sessions and require fresh applications each session. He also confirmed that loan repayment has commenced, with some beneficiaries who have graduated and secured employment already beginning to repay their loans.