Barely 11 months after its launch, Nigeria’s ambitious student loan programme under the Nigerian Education Loan Fund (NELFUND) has drawn more than half a million applications, highlighting the urgency of financial support for tertiary education in the country.
The Managing Director of NELFUND, Akintunde Sawyerr, confirmed that over 500,000 Nigerians have registered for the scheme since its rollout in May 2024. This surge in applications signals a growing reliance on government-backed loans as tuition and living costs continue to rise across the nation’s universities and colleges.
NELFUND was created under the Student Loans (Access to Higher Education) Act, signed into law by President Bola Tinubu, to provide interest-free loans to students in tertiary institutions. The goal is to increase access to higher education for less-privileged Nigerians and reduce the financial strain on families.
The loans are meant to cover tuition fees and a stipend for upkeep, which will be paid directly to the institutions and students respectively. Though over 500,000 have applied, the exact number of disbursements made so far remains unclear in the latest reports, but previous updates noted that disbursements had begun in phases.
According to the agency, repayment is expected to begin two years after graduation and only after the beneficiary secures employment. At that point, 10% of the graduate’s salary will be automatically deducted monthly to offset the loan. This model aims to avoid burdening unemployed graduates and to ensure a fair repayment structure based on income.
The fund disbursed ₦116.18 billion in 2024, with a leaner budget of ₦58.4 billion earmarked for 2025—a figure analysts argue may fall short of meeting growing demand. With over 500,000 applicants already on record, the available budget could limit the number of successful recipients or reduce the amount each student receives.
NELFUND says the platform will be expanded in phases to include students in state universities and other categories previously excluded. Currently, the programme is available mainly to students in federal institutions.
The massive interest in the scheme reflects both the eagerness of young Nigerians to acquire higher education and the economic pressures pushing many toward public financial aid. It also puts pressure on the government to scale up funding and ensure the programme delivers on its promises without delays or bureaucracy.
Analysts say that unless the job market improves, the repayment model could face major hurdles, as thousands of graduates struggle yearly with unemployment. Moreover, ensuring accountability in disbursement and repayment monitoring will be crucial to the programme’s survival.
The NELFUND student loan portal remains open to eligible applicants. The agency insists that the application process is transparent and will continue to evolve to meet student needs.
The success or failure of this initiative could reshape how Nigerian students finance their education in years to come.
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