Introduction
In response to the sharp withdrawal of blanket tuition subsidies by President Bola Tinubu’s administration in the 2023 budget, public universities across Nigeria were compelled to impose steep fee hikes; reaching 600 percent at the University of Lagos (Daily Post, 2023) and 480 percent at the University of Ibadan, with most institutions raising ancillary charges by 100–300 percent. These sudden increases exposed the long-standing fiscal neglect of Nigeria’s public higher education system, prompting the federal government to launch the Nigerian Education Loan Fund (NELFUND) under the Student Loans (Access to Higher Education) Act, 2024. Funded by a dedicated 1 percent levy on federal tax revenues, NELFUND aims to bridge the affordability gap by providing zero-interest loans for tuition, institutional fees, and living stipends, accessed through a digital portal designed to eliminate gatekeeping and corruption.
But the urgency of this rollout also highlights a more systemic failure: successive governments have deferred investment in tertiary education infrastructure, leading to a crisis that now requires students themselves to shoulder the burden of sustainability.
Understanding the Student Loan Fund
Purpose and Origins
NELFUND was created to address the funding crisis triggered by the removal of direct tuition subsidies. With federal allocations to education consistently falling below 7 percent of the national budget, far short of UNESCO’s recommended 15–20 percent (ICIR, 2023), universities turned to internally generated revenue, passing costs onto students. NELFUND’s interest-free loans target both financial inclusion for underprivileged learners and the long-term survival of tertiary institutions under strain.
How It Works
The fund is managed by a board including representatives from the Ministries of Education and Finance and the Central Bank of Nigeria (Punch, 2025). Its fully automated portal handles applications, verification, and disbursement without human intervention, ideally designed to reduce bureaucratic hurdles and corruption.
Who Stands to Benefit
Eligibility Criteria
Applicants must be Nigerian citizens with valid National Identity Numbers (NIN) and Bank Verification Numbers (BVN), hold admission in accredited public universities, polytechnics, or vocational centres, and have no major disciplinary infractions (Wikipedia, 2025). Unlike previous schemes, there are no family-income limits or guarantor requirements.
What the Loan Covers
Approved students receive direct payments to their institutions for tuition and fees, while stipulated upkeep allowances are credited to personal bank accounts to support living costs.
Navigating the Application Process
- Sign Up and Verify: Register on the NELFUND portal and complete identity verification with NIN and BVN.
- Submit Documents: Upload JAMB admission letters, institutional identification, and bank details.
- Institutional Confirmation: Schools validate enrolment and fee schedules.
- Receive Funds: Tuition fees are paid to universities; stipends are disbursed to students directly.
Despite the streamlined design, challenges such as limited internet access in rural areas and inconsistent school participation can cause delays (ICIR, 2023).
Public Perspectives and Potential Pitfalls
While many students welcome the relief of zero-interest financing, concerns remain. Student unions and education groups have called for public dashboards to track disbursements after reports of unaccounted funds and uneven regional implementation (Peoples Gazette, 2024). Surveys show that fewer than one-third of eligible students were aware of the scheme in its first year, indicating gaps in communication and outreach that risk deepening existing inequalities.
Furthermore, with tuition still rising and inflation eating into stipend value, critics argue the loans may merely delay, rather than resolve, the structural affordability problem.
Alternative Funding Routes
- Bank of Industry Loans: These cover local and international studies but require collateral or guarantors. Repayment is deferred until after graduation (ICIR, 2023).
- Private and Microfinance Options: Offer quick access but with high flat-rate interest (up to 18 percent), making them risky for long-term borrowers.
Making the Decision
For Nigerian students navigating a transformed higher education landscape, NELFUND represents both a lifeline and a lesson in civic engagement. Borrowers must weigh the benefits of interest-free, no-guarantor loans against potential delays and transparency gaps. Early registration, engagement with campus support services, and comparison of funding options will help determine the best financial path. Following official NELFUND and TETFund channels is critical to staying informed.
As Nigeria’s education financing model shifts under austerity and reform, informed navigation, not passive hope, will be key to ensuring that no student is priced out of opportunity.
References
- Daily Post Nigeria. (2023, October 2). Federal Varsities’ Fees Hike Unsettles Nigerians. https://dailypost.ng/2023/10/02/federal-varsities-fees-hike-unsettles-nigerians/
- ICIR Nigeria. (2023). Despite Pledging Improved Funding, Tinubu Allocates Less Than 7% of Budget to Education. https://www.icirnigeria.org/despite-pledging-improved-funding-tinubu-allocates-less-than-7-of-budget-to-education/
- State House Nigeria. (2024, April 3). The Student Loan (Access to Higher Education) Act, 2024. https://statehouse.gov.ng/news/in-detail-the-student-loan-access-to-higher-education-act-2024/
- Wikipedia Contributors. (2025, May). Nigerian Education Loan Fund. https://en.wikipedia.org/wiki/Nigerian_Education_Loan_Fund
- Peoples Gazette Nigeria. (2024). NELFUND Receives Over 500,000 Applications in First Year. https://gazettengr.com/nelfund-receives-over-500000-applications-in-first-year/
- Punch Newspapers. (2025). NELFUND Denies Mismanagement of Student Loans. https://punchng.com/nelfund-denies-mismanagement-of-student-loans/
