Relief With Conditions: The Good, Bad, and Ugly nature of NELFUND

           Kehinde Ayodele 

When Mariam, a Part 2 student of Obafemi Awolowo University (OAU), Ile-Ife, refreshed her bank app (perhaps her eyes were deceiving her) that Tuesday morning, her heart raced. For weeks, she had survived on borrowed transport fares and one meal a day. Fortunately, it appeared; a whooping sum of #20,000 has been credited to her, from the Nigerian Education Loan Fund (NELFUND), widely known as the student loan scheme. 

For the first time in months, Mariam, an average Nigeria student, struggling and doing everything she could to do as self support, in a bid to be educated, could finally breathe.

Across the Nigeria Federal, State, and Private owned tertiary institutions, thousands of students could relate to Mariam’s story, as many of them have constantly had similar experiences since the introduction of the Nigerian Education Loan Fund (NELFUND). 

The Nigerian Education Loan Fund (NELFUND) was established by President Bola Tinubu in April 2024 through the enactment of the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act 2024, with the ultimate aimof easing the financial burden on students in Nigeria tertiary institutions. The scheme generally provides full tuition support and an optional monthly upkeep allowance to validated undergraduate students in Nigeria. This scheme, for many, is more than a government policy; it is survival.

A Lifeline for Struggling Students

In a country constantly plagued with inflation affecting household income and expenditures, university education has become increasingly expensive. Essentials like food, accommodation, transportation, handouts, and project materials often stretch students beyond their limits. Some take up multiple side hustles; others depend heavily on already strained parents.

NELFUND has offered relief

Several beneficiaries say the upkeep allowance has helped them focus more on their academics. “It may not be a lot,” said a Part 3 student of Mass Communication, “but it reduces the constant anxiety of where my next meal will come from”

By covering tuition and providing monthly support, the scheme has reduced dropout risks and renewed hope among undergraduates, who once feared financial interruption.

Moreover, while the fund appears effective on paper, its implementation has exposed certain institutional gaps, raising different concerns amongst students.

The OAU Calendar Dilemma

For students of Obafemi Awolowo University (OAU), Ile-Ife, the experience with the loan scheme has been mixed, the institution’s academic calendar has led to an deficient distribution of the monthly stipend to the eligible team students.

OAU’s academic calendar has, over the years, experienced delays, placing the institution behind many other universities in the country. While this may seem like an administrative issue, its impact on NELFUND beneficiaries has been significant.

The upkeep allowance is disbursed based on an institution being officially in session. Once a new academic year begins nationally, payments automatically stop for students whose schools are not aligned with that timeline. As a result, some OAU students report receiving only one or two months of upkeep out of an expected twelve-month support cycle.

“The loan is a blessing,” one student explained. Speaking further, he lamented how the stagnant OAU academic calendar has disrupted the disbursement of the monthly stipend, “it is quite disheartening and frustrating that our academic calendar is far behind, by implication , the system reads it differently. Therefore, we don’t get the full benefit.”

Emiola, another student added — “what was designed as a continuous support system had been forced to become an interrupted support system, via our school calendar.” 

Policy Meets Reality

The situation raises broader questions about policy flexibility. Should student loan disbursement systems account for variations in university calendars, or should institutions with delayed sessions receive tailored consideration to ensure students are not unintentionally disadvantaged?

While NELFUND’s objective remains commendable, its implementation highlights the complexities of administering a national scheme across institutions with differing academic structures.

For students already navigating financial hardship, even a few missed months of allowance can mean unpaid rent, accumulated debts, or increased academic stress to them 

Hope and the required Adjustments 

Despite the challenges, beneficiaries insist the scheme has made a difference. It has reduced pressure on families and offered breathing space in difficult economic times. For many Nigerian students, it represents recognition and acknowledgment that education should not be abandoned due to poverty.

Meanwhile, until institutional disparities like calendar misalignment are addressed, some students may continue to receive help in fragments of support that begins with relief but ends with uncertainty. They simply hope that it becomes a steadier one.