How students’ loan scheme is revolutionising education financing across Nigeria

By Adebowale Johnson

The Nigeria Education Loan Fund (NELFUND) has emerged as a game-changer in the country’s education sector, providing financial assistance to thousands of Nigerian students in tertiary institutions through flexible repayment and interest-free loans.

Established by the federal government in 2024, NELFUND aims to increase access to higher education, reduce out-of-school students and increase youths’ employability by reducing the burden of education financing on students and their parents.

For many Nigerian students, the burden of academic related expenses can be overwhelming. NELFUND’s student loan bridges this financial gap and breaks down barriers by enabling students to pursue their academic goals without stress. The loan covers tuition fees and upkeep allowances, ensuring that students can focus on their studies instead of juggling multiple jobs or side hustles to survive.

This financial support has been a lifeline for students like Chiamaka Oshite, a Mass Communication student at the University of Cross River State, who receives timely financial assistance to purchase textbooks and participate in classwork without falling behind.

Likewise, ₦20,000 monthly upkeep allowance has reduced Aisha Falalu’s reliance on her parents. Aisha, a Biology student at Umaru Musa Yar’Adua University in Katsina, now sorts her practicals, printing of assignments, and transportation to school, thereby making her daily life as a student easier and more organised.

The financial assistance offers peace of mind to Khadija Sonibare, a pharmacy student at the University of Ibadan and her dad. She attends her lectures, clinicals, laboratory sessions and other things without worrying about tuition and upkeep allowance.

“The loan has reduced the financial burden from the person (my dad) sponsoring my education. I’ve been able to concentrate more because I don’t have to think of budgeting for school fees. The allowance just makes me concentrate and more focused without bothering my dad about getting money for school,’’ she stated.

Young Nigerians like Samuel Udeh, a History and International Studies student at the University of Uyo, Chiamaka, Khadija and other beneficiaries are empowered to think bigger about their goals and how they can give back to society.

Udeh and Chiamaka say the loan programme is enabling them to pursue their dreams of becoming a diplomat and opening a radio station, respectively. Khadija wants to become a big player in the Nigerian healthcare sector. Also, Ibe Sharon,  a Linguistics student at the Federal University Oye-Ekiti (FUOYE) is happy the fund will make her dream come true with less stress.

For Great Favours, Bio-Chemistry student of the University of Lagos, it’s a huge relief which has reduced distractions to make him focus more on achieving his goal.

These students’ testimonies reflect how NELFUND is enabling students to focus on their goals without worrying about school fees.

The NELFUND loan application process is straightforward and accessible. Students can easily register and apply for the loan online, making it possible for students from all over the country to access the financial assistance they need. Student beneficiaries have praised the ease of the application process, encouraging fellow students to apply to ease their burdens.

Since its launch on May 24, 2024, NELFUND has disbursed a total sum of over ₦107 billion to cover tuition fees and upkeep allowances for over 580,000 students in more than 230 tertiary institutions across Nigeria’s 36 states and FCT as at October 3, 2025.

Benefits to tertiary institutions are also part of the big pie. The loan programme is ensuring guaranteed and timely tuition payments from NELFUND to institutions of the beneficiaries.

This has resulted in higher student enrollment and retention, better financial planning and investment opportunities, and enhanced institutional reputation and equity promotion. Vice-Chancellors, provosts, registrars and bursars in tertiary institutions across Nigeria have praised the administration of President Tinubu for launching the loan scheme.

Vice-Chancellor, Enugu State University of Science and Technology, Prof. Aloysius-Michaels Okotie, expressed gratitude to NELFUND for the timely processing of students’ applications and disbursement of institutional tuition and upkeep allowances. He disclosed that over N107.8 million was disbursed for 863 ESUT students, for the 2024/25 session, commending NELFUND for the transparency of the loan process.

“The University Management hereby conveys our appreciation to the management of NELFUND for the transparent service to the education sector,’’ he stated, affirming that the money would be remitted to the beneficiaries promptly.

Registrar of Osun State University, Mrs. Atinuke Oguntunde, also expressed heartfelt appreciation to NELFUND for the disbursement of over ₦1.1 billion institutional fees for 3,599 students, for the 2024/2025 academic session.

“These interventions, disbursed to the university in six tranches, have greatly assisted 3,599 students to further pursue their studies without stress in the 2024/2025 academic session,’’ she stated, while commending the Federal Government for the initiative, stating that it is assisting students to face their students without worry about funding.

Managing Director/chief executive officer of NELFUND, affirms the loan programme is a transformative initiative by President Bola Tinubu to increase access to higher education for Nigerian youths by breaking down financial barriers.  He added that the vision of the President was to make the loan scheme an enduring legacy that would benefit generations of unborn children.

“This is a transformational initiative by President Bola Ahmed Tinubu. He is absolutely committed to ensuring the programme starts well, runs well and remains sustainable. It’s really not just about funding education; this programme represents a pillar of change, a revolution if you like, to what this country is seeking,” he affirmed.

With a flexible repayment plan, effective two years post-National Youth Service Corps upon securing gainful employment, easy application process, and timely disbursement of funds, the interest-free loan programme is empowering young Nigerians to pursue their academic goals uninterrupted and contribute to the nation’s growth.

Financial access to education, regardless of income level, has improved academic performance due to reduced stress. Students can now focus on their studies, and parents can breathe a sigh of relief knowing that their children’s education is secured.

The loan programme has also promoted upward mobility and a better future for students. As the loan programme continues to expand, it is poised to make a lasting impact on the country’s education sector, promoting access to quality education and employability for generations to come.