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- How President Tinubu’s Student Loan Scheme Completes Nigeria’s Educational Transformation
By Prof. Temitope Babalola
Dean of Student Affairs and Support Services, Federal University Oye-Ekiti
Introduction: A Tale of Three Interventions
In the annals of Nigeria’s educational policy history, three landmark interventions stand out as epoch-making milestones — each responding to the unique challenges of its era, each reshaping the landscape of learning in profound ways, and each progressively bringing government closer to the ordinary citizens. These are: the Free Universal Primary Education (UPE) of the Western Region under Chief Obafemi Awolowo in 1955; the Universal Basic Education (UBE) programme launched by President Olusegun Obasanjo in 1999; and now, the Nigerian Education Loan Fund (NELFUND) established by President Bola Ahmad Tinubu in 2024.
The first built the foundation. The second expanded the structure. The third is completing the edifice by ensuring that no Nigerian is denied higher education due to poverty. Yet, as remarkable as these interventions have been, there is a critical distinction between them — one that those in charge of public engagement in President Tinubu’s government must urgently understand and communicate. NELFUND is not merely another educational policy; it is the first intervention in Nigeria’s history designed to touch the lives of ordinary Nigerians directly — irrespective of ethnicity, religion or political affiliation. It is, in every sense, the right peg finally finding the right hole.
The First Milestone: Awolowo’s Free Universal Primary Education (1955)
No discussion of Nigeria’s educational transformation is complete without acknowledging the revolutionary impact of Chief Obafemi Awolowo’s Free Universal Primary Education (FUPE) scheme, launched in the Western Region on January 17, 1955. According to a renowned historian Professor Toyin Falola, “no single decision of the decade before independence had been more fateful for the development of the political economy of Nigeria.”
The statistics were staggering. With over 50% of children between the ages of six and twelve years enrolled as beneficiaries, the Western Region took a quantum leap toward universal primary education. Primary school enrolments burgeoned phenomenally, creating a wider base from which secondary schools, trade schools, and teacher training colleges drew their entrants. This, in turn, quickened the pace of middle-level workforce development and laid the groundwork for the region’s post-independence dominance in civil service, commerce, and professional fields.
Awolowo himself documented the transformative impact: by the time he left office, the number of Nigerians in the higher rung of the civil service in the West had risen to 1,275 senior officers, representing 75% of the total actual strength — up from a mere 18% in 1952. By independence in 1960, the Western Region had 47.3% of the students at the University College, Ibadan, compared to the Eastern Region’s 39.8% and Northern Nigeria’s paltry 8.4%. In the areas of political sophistication and economic growth, the Western Region towered above all other regions.
However, Awolowo’s FUPE was an intervention at the primary education level. While it transformed the Western Region and inspired similar — though less successful — schemes in other regions, its direct beneficiaries were school-age children. The impact on the average adult villager was indirect: better-educated children, improved community literacy, and eventual economic growth. My uncle in the village would have seen his children go to school for free, but he himself would not have received a direct financial benefit from the policy.
The Second Milestone: The Universal Basic Education (UBE) Programme (1999)
Fast-forward four decades, and Nigeria faced a crisis of staggering proportions. Despite the UPE schemes of the 1970s, which saw primary school enrolment surge from 6.2 million in 1975–76 to 14.8 million by 1992, the system was buckling under the weight of unanticipated expansion. There were profound shortages of learning facilities, a severe dearth of qualified teachers, and insufficient funds to sustain the momentum.
In response, the administration of President Olusegun Obasanjo launched the Universal Basic Education (UBE) programme in 1999, culminating in the UBE Act of 2004, which mandated free, compulsory, and universal basic education for grades 1–9 (six years of primary school followed by three years of junior secondary school). The programme was ambitious in scope and noble in intent.
The numbers, according to the World Bank and UBEC data, tell a story of both progress and persistent challenge. Between 2014 and 2018, basic education enrolment grew by 18% — from 29.8 million to 35.1 million students. By 2018, the Gross Intake Rate to Grade 1 jumped to 98.3%, and total basic education enrolment reached 35.1 million. More recent statistics from the 2022 National Personnel Audit show UBE schools numbering 171,027 with total enrolments of 47,010,008 students (33,315,654 in public schools and 13,694,354 in private schools), plus an additional 7,234,695 in Early Childhood Care Development Education (ECCDE).
However, the UBE programme, like Awolowo’s FUPE before it, remained focused on system-level development. It built schools, trained teachers, provided instructional materials, and expanded access — but the direct financial impact on individual families, while significant in terms of waived tuition fees, was still mediated through institutions. The average Nigerian farmer or trader in the village knew that basic education was now free, but the policy did not put money directly into their pockets or relieve them of the full cost of educating their children beyond the basic level. Indirect costs — uniforms, books, transportation, feeding — remained burdensome, and the transition to higher education remained a financial cliff that many families could not scale.
The Third and Defining Milestone: NELFUND (2024)
Enter the Nigerian Education Loan Fund (NELFUND), established under the Students Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024, signed into law by President Bola Ahmad Tinubu on April 3, 2024. NELFUND represents a paradigm shift of historic proportions — the first Nigerian educational intervention designed to deliver direct, tangible, and personal financial relief to individual students and their families at the tertiary level.
The scale of NELFUND’s impact within its relatively short operational lifespan is nothing short of remarkable. As of April 15, 2026, the Fund has received 1,771,797 applications since the launch of its application portal on May 24, 2024. Of these, 1,388,592 students have successfully benefited from the scheme, with cumulative disbursements reaching ₦242.4 billion.
A breakdown of this figure reveals the dual-pronged approach of the intervention: ₦157.4 billion has been paid directly to 288 beneficiary institutions across the country as tuition and institutional charges, while ₦84.9 billion has been disbursed as upkeep allowances to students to support their living expenses during their academic programmes.
By February 2026, applications had surged to 1,599,243, with total disbursements climbing to ₦184 billion, covering institutional fees and upkeep allowances for students across 265 institutions.
These are not abstract figures. Behind every number is a story — a student who would have dropped out, a family relieved of crushing financial burden, a community witnessing the transformative power of accessible education.
From System Development to Human Development: The NELFUND Difference
TETFund and similar interventions have made invaluable contributions to Nigerian higher education. Since its establishment, TETFund has disbursed over ₦1.7 trillion for physical infrastructure, academic research, and staff development across public tertiary institutions. These investments have produced world-class laboratories, modern libraries, and improved teaching facilities. However, the direct beneficiaries have largely been institutions, not individuals.
My uncle in my hometown — a modest farmer in Ekiti State — has never set foot in a university library funded by TETFund. He has never directly benefited from a research grant or an academic staff training programme. The impact of these systemic interventions, while profound for the education sector, has remained indirect for millions of ordinary Nigerians.
NELFUND changes this narrative fundamentally. When a student registers with NELFUND, the government pays their school fees directly to their institution. Additionally, each student receives a ₦20,000 monthly upkeep allowance to cover living expenses — transportation, feeding, textbooks, and other academic necessities. Although structured as a loan, repayment is deferred until after graduation and securing employment, with flexible installment plans designed to ensure that the burden does not cripple the beneficiary’s post-graduation life.
For my uncle in the village, this means he no longer has to sell his livestock or borrow from cooperative societies to pay his children’s school fees. The weight of educational financing has been lifted from his shoulders, allowing him to invest in his farm, improve his family’s living standards, and plan for the future with greater certainty. NELFUND has touched him directly — and millions like him across Nigeria’s six geopolitical zones.
Equity and Inclusivity: A Policy Above Divisions
One of the most remarkable features of NELFUND is its inherent neutrality. Unlike many government programmes that have historically been susceptible to ethnic, religious, or political manipulation, NELFUND operates on a simple, transparent principle: if you are a Nigerian student in a public tertiary institution and you meet the eligibility criteria, you qualify.
The Fund covers students in federal and state universities, polytechnics, and colleges of education across all 36 states and the Federal Capital Territory. The list of beneficiary institutions spans from Adamawa State University in the Northeast to Lagos State University in the Southwest, from the University of Medical Sciences in Ondo to Borno State University in the troubled Northeast.
This geographic spread ensures that no region is left behind. A student in Zamfara State University receives the same treatment as one in the University of Lagos. A polytechnic student in Borno is not disadvantaged compared to a university student in Abuja. In a country where policy implementation has often been skewed by sectional considerations, NELFUND stands as a beacon of equitable governance.
The 2024 Act that established NELFUND also removed discriminatory provisions present in the earlier 2023 legislation. For instance, the repealed Act had disqualified children of persons who had defaulted on previous loans — a provision that would have perpetuated intergenerational poverty and penalised innocent students for their parents’ financial difficulties. The 2024 Act wisely removed this barrier, ensuring that every eligible Nigerian student has a fair shot at higher education.
Relieving the Burden on Average and Below-Average Families
Nigeria’s economic realities have made tertiary education increasingly unaffordable for average and below-average income families. With inflation hovering at record highs, the naira experiencing significant devaluation, and the cost of living skyrocketing, many families have been forced to make agonising choices between feeding their children and educating them.
NELFUND directly addresses this dilemma. By covering tuition fees and providing a monthly upkeep allowance, the Fund effectively removes the financial barrier that has kept countless talented young Nigerians out of tertiary institutions. A family that would have struggled to raise ₦100,000 or more per session for a child’s tuition can now redirect those resources toward other pressing needs — healthcare, housing, business expansion, or supporting younger siblings.
The impact on household economics cannot be overstated. For a family earning the national minimum wage, saving for university fees represents a herculean task. NELFUND transforms this impossible equation into a manageable one. The student borrows against their future earning potential, the family retains its financial stability, and the nation gains an educated citizen.
Job and Wealth Creation: The Long-Term Vision
Education is not merely about personal advancement; it is the engine of national development. NELFUND’s potential to influence job and wealth creation in Nigeria is immense and multifaceted.
First, by expanding access to tertiary education, NELFUND is increasing the pool of skilled graduates entering the Nigerian labour market. A well-educated workforce is the foundation of any knowledge-based economy. As more students complete their degrees without the disruption of financial withdrawal, Nigeria’s human capital base expands.
Second, the Fund’s structure encourages entrepreneurship and self-employment. Unlike traditional loans with punitive interest rates, NELFUND’s repayment terms are designed to be flexible. Beneficiaries who choose entrepreneurship over formal employment can negotiate repayment schedules based on their business income. This flexibility reduces the risk aversion that often prevents graduates from starting businesses.
Third, the government’s recent launch of the Student Venture Capital Grant (S-VCG) programme — which awarded ₦2.2 billion in grants to 45 student-led startups from over 30,000 applications across 404 tertiary institutions — demonstrates a clear linkage between educational financing and wealth creation. These student entrepreneurs, supported by NELFUND’s educational foundation, are being equipped to build scalable, tech-driven ventures capable of generating employment for others.
Fourth, the multiplier effect of NELFUND disbursements on local economies is significant. When ₦84.9 billion is injected into the economy as student upkeep allowances, it stimulates demand for goods and services in university host communities — from food vendors to transporters, from bookshops to landlords. This is fiscal policy working at the grassroots level.
Comparing the Three Interventions: A Historical Continuum
This comparison reveals a clear historical trajectory: from Awolowo’s regional primary education revolution, through Obasanjo’s nationwide basic education expansion, to Tinubu’s tertiary-level direct financial intervention. Each built upon the last, and each addressed the educational needs of its time. But NELFUND is unique in one critical respect: it is the first intervention that puts money directly into the pockets of beneficiaries and their families, making the impact immediate, personal, and transformative.
Feature
Awolowo’s FUPE (1955)
UBE Programme (1999)
NELFUND (2024)
Level of Education
Primary
Basic (Primary + Junior Secondary)
Tertiary
Nature of Intervention
Free tuition at primary level
Free compulsory basic education
Student loans (tuition + upkeep)
Direct Financial Impact on Families
Indirect (waived tuition)
Indirect (waived tuition)
Direct (fees paid + ₦20,000/month allowance)
Geographic Scope
Western Region only
Nationwide
Nationwide
Key Achievement
50%+ enrolment; 75% senior civil service from West by 1960
47 million enrolments by 2022; 171,027 UBE schools
1.39 million beneficiaries; ₦242.4 billion disbursed
System vs. Individual Focus
System-focused
System-focused
Individual-focused
Repayment Structure
None (fully subsidised)
None (fully subsidised)
Income-contingent loan (repay after graduation/employment)
The Public Engagement Imperative: Telling the NELFUND Story
The opening premise of this article bears repeating with renewed urgency: those in charge of public engagement in President Tinubu’s government must ensure they are the right pegs in the right hole. NELFUND is arguably the most transformative educational policy of this administration — and potentially one of the most consequential in Nigeria’s entire educational history — yet its public narrative has not always matched its monumental impact.
The story of NELFUND is not a story of bureaucracy or statistics. It is a story of 1.39 million lives changed, of ₦242.4 billion invested in Nigeria’s future, of 288 institutions empowered to focus on education rather than fee collection, and of millions of families relieved of the crushing burden of educational financing. It is the story of a farmer in Ekiti who no longer sells his yam harvest to pay school fees. It is the story of a widow in Kano who can now afford medicine for her sick child because NELFUND covers her daughter’s university expenses. It is the story of a young man in Rivers who, without NELFUND, would have abandoned his engineering degree to become a motorcycle taxi rider.
The public engagement machinery must amplify these stories. Every beneficiary is a testament to the Renewed Hope Agenda in action. Every village that sees its children graduate because of NELFUND is a community transformed. Every Naira disbursed is an investment in a more equitable, prosperous Nigeria.
Conclusion: Completing the Educational Arc
From Awolowo’s visionary free primary education in the Western Region, through Obasanjo’s nationwide UBE programme, to Tinubu’s groundbreaking NELFUND, Nigeria has travelled a remarkable educational journey. Each intervention addressed the needs of its era; each left an indelible mark on the nation’s development trajectory.
Awolowo gave the West — and by extension, Nigeria — the gift of literacy and the foundation of human capital. Obasanjo attempted to universalise that gift across the entire federation, expanding access and building institutional capacity. Tinubu, with NELFUND, has now addressed the final frontier: ensuring that the talented child from the poorest home can access tertiary education without condemning their family to financial ruin.
For my uncle in the village, NELFUND is not a press release or a budget line item. It is the reason his daughter can sit in a lecture hall at the Federal University Oye-Ekiti. It is the reason he sleeps better at night, knowing that his child’s education is secured. It is the reason he believes, perhaps for the first time, that government can work for people like him.
As Nigeria grapples with the challenges of the 21st century — demographic explosion, youth unemployment, technological disruption, and economic diversification — the importance of educating every willing and able young mind cannot be overstated. NELFUND is the vehicle through which this aspiration becomes reality.
The right peg is finally in the right hole. And Nigeria is better for it.
About the Author
Prof. Temitope Babalola is the Dean of Student Affairs and Support Services at the Federal University Oye-Ekiti, Ekiti State, Nigeria. He is interested in educational policy, student welfare, and national development
