The Nigerian Education Loan Fund NELFUND has announced plans to replace its current method of paying tuition fees directly to tertiary institutions with a new digital token-based payment system.
The proposed system is designed to improve transparency, reduce payment errors, and eliminate cases of double tuition payments experienced by some beneficiaries of the student loan scheme.
The Managing Director of NELFUND, Akintunde Sawyerr, disclosed the planned reform during an interview, explaining that the upgrade will allow students to authorize tuition payments directly to their institutions using secure digital tokens.
According to Sawyerr, students will receive a digital token on their mobile devices, which can be activated when they visit their institution’s bursary department. Once the token is used, the tuition payment will be processed instantly, allowing students to complete their registration and continue with academic activities.
He explained that after the system is fully implemented, NELFUND will no longer transfer tuition fees directly to higher institutions. Instead, students will initiate the payment themselves through the secure token platform, while ensuring that the funds remain dedicated solely to educational purposes.
New System Aims to Prevent Misuse of Tuition Funds
Sawyerr noted that the decision not to pay tuition loans directly into students’ personal bank accounts was intentional. According to him, unrestricted access to tuition funds could result in some beneficiaries using the money for purposes other than paying school fees.
He stated that the student loan programme, introduced under the administration of Bola Ahmed Tinubu, was created to ensure that qualified Nigerian students are not denied access to tertiary education because of financial challenges.
While tuition payments remain controlled, students will continue receiving their approved monthly upkeep allowances directly into their bank accounts.
Digital Upgrade Expected to Eliminate Double Payments
NELFUND explained that the planned reform follows numerous complaints from students who paid their tuition fees before their loan applications were processed, only for the Fund to later pay the same fees to their institutions, resulting in duplicate payments.
According to Sawyerr, many of these challenges occurred because the student loan programme began in the middle of an academic session. Students who needed to meet registration and examination deadlines often paid their fees before receiving loan approval.
He added that synchronizing loan applications and disbursements with the academic calendar, alongside the new token-based payment system, will significantly reduce such problems in future academic sessions.
Student Loan Programme Continues to Expand
The digital payment initiative forms part of NELFUND’s ongoing efforts to strengthen accountability, improve service delivery, and enhance the efficiency of Nigeria’s student loan programme as the number of beneficiaries continues to increase.
Earlier reports from NELFUND showed that the agency had disbursed over ₦206.29 billion in student loans to more than 1.16 million beneficiaries. The Fund also revealed that over 1.73 million students have applied for the scheme since applications opened in May 2024, demonstrating the growing demand for financial support among students in Nigerian tertiary institutions.
Community Join the conversation Open discussion +