Nigerian Education Loan Fund (NELFUND) in a sharp policy shift announced that upkeep loan disbursements will now be strictly tied to the academic sessions of enrolled institutions. The decision effectively discontinues upkeep payments once an academic year concludes. Thus requiring students to reapply at the start of each new session. It also means there is no upkeep payment during holidays.
Anchoring Support to Academic Timelines
NELFUND’s Director of Corporate Communications, Oseyemi Oluwatuyi, explained that “…students shall only be entitled to upkeep loans for their current academic session. Upon the conclusion of an institution’s academic year, upkeep payments for that session shall automatically cease.”
To qualify for both institutional charges and upkeep in any session, students must apply anew at the beginning of that academic year. The move is designed to ensure accuracy, transparency, and alignment between funding and actual academic engagement.
Digital Transparency: Portal Upgrades Reflect the Change
NELFUND is automating its loan portal to display only upkeep loans that have actually been collected by each student during the relevant academic session. This enhancement is part of broader modernization efforts to improve data tracking and reduce discrepancies.
Institutions are urged to upload academic calendars and sessional data in a timely manner to ensure beneficiaries receive their full upkeep entitlements.
Clearing Backlogs and System Enhancements
The policy update comes in parallel with a push to address past delays in disbursements. In July 2025, NELFUND resumed upkeep payments to students who updated their bank information. Over 3,600 beneficiaries had received previously delayed allowances after switching from digital wallet to commercial bank accounts.
Earlier, in May, the Fund commenced disbursement of April 2025 upkeep payments, advising that a system upgrade improved security and is expected to streamline future payouts.
Scope and Scale: How Far Has NELFUND Reached?
A newly released status report shows that as of August 6, 2025, NELFUND has disbursed a total of ₦86.3 billion in student loans. Of this, ₦47.6 billion went directly to institutions for tuition fees, while ₦38.7 billion was issued as upkeep allowances to students.
To date, 731,140 students have registered on the portal, and 720,732 of them have successfully applied—reflecting a remarkable 98% application success rate.
What This Means for Students and Institutions
Below are what students and institutions are expected to do in line with this development:
Students: Must stay aware of session start dates and ensure they apply early each academic year to maintain eligibility for upkeep and institutional charges. Staying updated on the portal and bank detail records remains essential.
Institutions: Timely submission of academic calendars and sessional timelines is now crucial for ensuring students receive uninterrupted funding.
For further inquiries or assistance, students and institutions can reach out via:
- Email: [email protected]
- X (formerlyTwitter): @nelfund
- Instagram: @nelfund
- Facebook and LinkedIn: Nigerian Education Loan Fund-NELFUND
NELFUND at a Glance
Established by the Student Loans Act, 2024 and signed into law on April 3, 2024, by President Bola Tinubu. NELFUND manages interest-free student loans, covering both tuition and upkeep. Under the leadership of Managing Director Akintunde Sawyerr, the agency has focused on automation and accountability since its launch.
Conclusion
NELFUND’s new directive represents a strategic refinement in its student financing framework. Of a truth aligning disbursements with academic sessions enhances transparency and ensures funds are routed efficiently. With upgraded systems and clarified guidelines, stakeholders are encouraged to engage proactively to maximize the impact of the loan initiative.