The Nigerian Education Loan Fund (NELFUND) has clarified the status of loan disbursements to two major universities, confirming ₦230.6 million paid to the University of Benin while explaining delays affecting Ladoke Akintola University of Technology students.
LAUTECH Payment Remains Pending as Institutional Processes Continue
The loan agency has provided transparency on disbursements to LAUTECH. Notably, payment to the institution remains incomplete. This is due to pending institutional processes required to finalize disbursement under the Education Loan Scheme.
Mrs. Oseyemi Oluwatuyi, Director of Strategic Communications at NELFUND, confirmed that engagements are ongoing with the university’s management. Professor Rasak Olatunde Rom Kalilu, the Vice-Chancellor, leads these discussions. The Fund aims to resolve outstanding issues. Additionally, it seeks to complete the disbursement process as soon as practicable.
NELFUND explains that disbursements are executed only after completion of institution-specific validation. Furthermore, reconciliation requirements must be met. In the case of LAUTECH, these processes were not concluded at the time of the Fund disbursement cycle. Consequently, third-party engagements with the University are ongoing. The Fund is working to resolve outstanding issues. Moreover, it aims to effect payment as soon as required steps are completed.
Meanwhile, NELFUND emphasizes an important commitment to affected students. Specifically, 12,733 verified LAUTECH students under the scheme should be allowed to sit for their examinations. The Fund remains fully committed to settling its obligations to the institution. Therefore, students and parents are advised to remain calm. Importantly, no beneficiary will be disadvantaged.
UNIBEN Receives ₦230.6M for 2,673 Student Beneficiaries
In related developments, NELFUND has confirmed successful disbursement to UNIBEN. The University received funds for eligible student beneficiaries under the Education Loan Scheme.
The confirmation follows an official acknowledgement letter issued by the University. Vice-Chancellor Professor Edoba Bright Omoregie signed the letter. It confirms receipt of two additional tranches of NELFUND disbursements. These cover 2,673 students. Altogether, they amount to a total sum of ₦230,599,250.
According to the statement, “The funds were received in January 2026 and have been duly acknowledged by the University.” The clarification becomes necessary following the circulation of a purported repayment circular. However, the University has formally disowned this document. It confirms that it did not originate from UNIBEN. Furthermore, no repayment guideline has been issued.
False Repayment Claims Addressed by NELFUND
Oluwatuyi addressed concerning reports circulating on media and social platforms. These reports falsely suggest that students are being directed to begin loan repayment immediately. The agency categorically states these reports are false, misleading, and unfounded.
NELFUND reiterates that funds have already been paid directly to UNIBEN. As such, no student is required to make any payment to the loan scheme at this time. Neither NELFUND nor the Federal Government has authorized any individual, group, or institution to request payments from students or beneficiaries. Therefore, students should disregard such claims entirely.
The Fund has not issued any directive requesting students to begin repayment of their loans. According to its establishment Act, the repayment process shields beneficiaries from repayment obligations until certain conditions are met. Specifically, repayment does not start immediately after graduation.
Commitment to Transparency and Collaboration
NELFUND remains committed to transparency, accountability, and collaboration with institutions. This ensures that eligible Nigerian students fully benefit from the Education Loan Scheme.
The Fund operates on clear principles. Disbursements follow verified institutional data submitted during application and validation processes. Payments are made directly to institutions for tuition fees. Subsequently, upkeep allowances are credited to students’ personal bank accounts.
Since its rollout in May 2024, the loan program has provided significant financial assistance to nearly 500,000 students in 225 tertiary institutions across Nigeria. This enables students to concentrate on their studies. Additionally, it allows parents to channel resources into other productive purposes.
How the Student Loan Scheme Works
The Nigerian Education Loan Fund was established under the Student Loans Act, 2024. President Bola Ahmed Tinubu signed it into law on April 3, 2024. Its primary objective is providing zero-interest loans to eligible Nigerian students.
The scheme covers students in public universities, polytechnics, colleges of education, and vocational schools. Applications are processed entirely online through the official portal at www.nelf.gov.ng. Importantly, no payment is required before loan disbursement. The loan is completely interest-free.
Repayment begins two years after completion of the National Youth Service Corps (NYSC). Once employed, 10% of monthly salary is automatically deducted. For self-employed beneficiaries, 10% of monthly profit is expected. Borrowers can choose to repay faster by paying more than the minimum required amount.