Strengthening NELFUND: Future of education financing in Nigeria

Nigeria's higher education system faces a persistent challenge: ensuring that financial constraints do not prevent academically capable students from pursuing university degrees. Millions of families struggle with rising tuition fees and insufficient income, leading many students to postpone enrollment, drop out, or abandon their studies altogether. In response, the Nigerian Education Loan Fund (NELFUND) has emerged as a critical intervention designed to provide structured, interest-free financial support.

Established under the Students’ Loans (Access to Higher Education) (Repeal and Re-Enactment) Act of 2024, NELFUND aims to cover both tuition and upkeep allowances for eligible students in public tertiary institutions. The scheme's early performance has been substantial, with cumulative disbursements reaching N161.97 billion by January 2026, benefiting 864,798 students across 263 institutions. Of this total, N89.94 billion was allocated directly to institutions for tuition fees, while N72.03 billion was provided to students for living expenses. These figures signify a major policy shift in Nigeria's commitment to accessible higher education.

However, a peer study by the Edike Foundation highlights operational challenges that could undermine NELFUND's long-term sustainability and credibility. A key issue identified is the timing of disbursements. The study found that 73 percent of respondents reported that NELFUND payments did not arrive before their institution's tuition deadline. Consequently, many students and families resort to personal funds to meet payment obligations, facing penalties for late payments, which 17 percent of respondents incurred. This systems-efficiency problem, including instances of duplicate tuition payments, requires careful attention to ensure the scheme operates smoothly and effectively fulfills its promise.