NELFUND Loan Begins Payment of ₦927 Million Unpaid Upkeep Allowances to 11,685 Nigerian Students

The Nigerian Education Loan Fund has commenced the payment of previously unpaid upkeep allowances to 11,685 students affected during the 2024/2025 academic session, marking a major step in resolving outstanding disbursement issues under the Federal Government’s student loan programme.

The Fund disclosed that the unpaid allowances, valued at ₦927 million, were discovered during a routine reconciliation exercise carried out to review student upkeep payments nationwide. The exercise identified several students whose allowances were delayed or not credited despite being eligible beneficiaries.

Speaking at a press briefing in Abuja, the Managing Director of the Nigerian Education Loan Fund, Akintunde Sawyerr, explained that the payment delays were caused by a combination of technical and operational challenges encountered during the initial disbursement process. These challenges included temporary network disruptions, failed transactions and cases where students’ bank account details could not be properly validated at the time payments were processed.

According to him, management approved a one time reconciliation initiative in line with the President’s directive on accountability, transparency and efficiency in public service delivery. The process involved direct engagement with affected students, a defined grace period for updating or providing alternative bank account details, and a multi layer validation procedure involving information technology, customer support, audit and finance teams before payments were released.

Sawyerr stated that the Fund’s priority is to ensure that every eligible student receives their entitlements accurately and without unnecessary delay, stressing that prompt payment remains central to the credibility of the student loan scheme.

He further revealed that no fewer than 864,798 students have so far benefited from the Federal Government’s education loan programme, with total disbursements amounting to ₦161.97 billion. A breakdown of the funds shows that ₦89.94 billion was paid directly to 263 tertiary institutions to cover tuition and other institutional charges, while ₦72 billion was disbursed straight to students as upkeep allowances.

The Managing Director also announced plans to deepen the impact of the student loan scheme through expanded engagement with parents, guardians, traditional institutions and community leaders across the country. According to him, the next phase of outreach will involve direct sensitisation in churches, mosques, motor parks and other community spaces to improve public awareness, build trust in the programme and encourage broader participation.

He explained that the outreach initiative is designed to ensure families fully understand how the student loan system works and are better positioned to support their children in accessing higher education through government backed financing.

Meanwhile, the Executive Director of Operations at the Fund, Mustapha Iyal, disclosed that 325 tertiary institutions have been onboarded for the 2025/2026 academic session, with an estimated 3.7 million students eligible to apply for loans. He added that while 283,275 applications for the current session have been successfully verified, 13,026 applications were rejected after failing to meet the required criteria.

The latest payments underscore the Federal Government’s commitment to strengthening access to higher education through sustainable student loan financing, while addressing operational gaps to ensure timely and transparent disbursement of funds.