The Nigeria Education Loan Fund, NELFUND, has announced plans to commence the settlement of N927.98 million in outstanding student loan disbursements owed to over 11,000 beneficiaries across the country, following delays linked to technical and operational challenges.
Speaking in an interview aired on Arise News on Wednesday, the Executive Director of Operations at NELFUND, Mr Mustafa Iyal, explained that the payment backlog was largely caused by errors in applications, particularly incorrect, inconsistent or duplicated bank account details submitted by students.
According to him, NELFUND has formally engaged the affected tertiary institutions, directing them to invite impacted students to correct and update their banking information.
He disclosed that close to half of the pending cases have already been successfully resolved through this process.
Iyal assured beneficiaries that the remaining arrears would be cleared imminently.
“By next week, we will commence the payment of all outstanding disbursements. This is a loan scheme, and it is important that students receive exactly the amounts they applied for,” he said.
Since the rollout of the national student loan scheme, NELFUND has disbursed a total of N161.97 billion, processed more than 1.36 million applications and provided financial support to 864,798 students nationwide.
To address the current backlog, the fund has adopted a one-off reconciliation framework that involves direct engagement with students, verification of bank account details and prompt payment once validation is completed.
The NELFUND operations chief also revealed plans to significantly scale up the scheme in the 2026–2027 academic session, with over 200 additional tertiary institutions indicating interest in joining the programme.
He noted that the payment of upkeep allowances is only triggered after institutions confirm that tuition fees have been settled, a measure designed to strengthen accountability and prevent abuse.
Iyal further emphasised that the entire application and verification process remains fully digital, integrated with institutional records and the Joint Admissions and Matriculation Board, JAMB, database, thereby eliminating the need for physical documentation.
On the sustainability of the scheme, he disclosed that approximately 50,000 graduates from the 2022–2023 academic cohort have already commenced early repayments, a development he said underscores growing confidence in the long-term viability of the student loan programme.
