Student Loan Disbursement Crosses ₦161 Billion as NELFUND Records Over 1.3 Million Applications

The Nigerian Education Loan Fund (NELFUND) has announced that total funds released under the federal student loan programme have risen to ₦161.97 billion, reflecting a sharp increase in access to education financing across the country.

According to the agency’s latest weekly operational report covering December 29, 2025, to January 4, 2026, the student loan scheme continues to gain momentum as more applicants successfully secure funding for tuition and living expenses.

During the one-week period, 17,507 fresh loan applications were submitted, pushing the total number of approved applications since the programme’s launch in May 2024 to 1,326,008 nationwide.

Over 860,000 Students Receive Loan Payments

NELFUND disclosed that as of December 29, 2025, a total of 864,798 students from 263 public tertiary institutions have already received loan disbursements.

A breakdown of the figures shows that ₦89.94 billion was paid directly to higher institutions to offset tuition and mandatory academic fees, while ₦72.03 billion was credited to students as upkeep support to cover basic living expenses.

The dual-payment structure is designed to ensure that academic costs are settled promptly while also providing financial relief to students struggling with accommodation, feeding, and transportation.

Federal Student Loan Scheme Targets Financial Inclusion

The Nigerian Education Loan Fund was created following the enactment of the Nigeria Student Loan Act, signed into law by President Bola Ahmed Tinubu in April 2024. The legislation established a government-backed, interest-free loan system aimed at improving access to higher education.

Under the scheme, students enrolled in public universities, polytechnics, and colleges of education can access loans without collateral, with priority given to applicants from low-income households.

Repayment Begins After Employment

NELFUND explained that beneficiaries are only required to begin repayment after completing their studies and securing gainful employment, a policy designed to reduce the financial burden on graduates during their early career stages.

The repayment model is structured to be income-based, ensuring affordability while promoting sustainability of the fund for future applicants.

Education Financing Gains National Attention

Education analysts say the steady rise in disbursement figures highlights growing awareness and acceptance of structured student loan financing in Nigeria, a system long adopted in many developed economies.

With tuition costs rising and household incomes under pressure, the student loan programme is increasingly viewed as a critical policy tool for expanding enrollment, reducing dropout rates, and strengthening Nigeria’s human capital development.

As application numbers continue to climb, stakeholders are closely monitoring the scheme’s long-term impact on tertiary education access, graduate employability, and national economic growth.