The Nigerian Education Loan Fund (NELFUND) has announced plans to prevent students from collecting tuition money from parents after receiving government-backed student loans. This move aims to eliminate the practice of "double-dipping," where students benefit from the loan scheme while still relying on their parents to pay their tuition fees. NELFUND Managing Director, Akintunde Sawyerr, described this practice as unacceptable.
NELFUND has identified cases of students allegedly benefiting from its loan scheme while still relying on their parents to pay their tuition fees. To address this issue, the fund plans to establish an online portal that will allow parents to check whether their children's school fees have been paid through the scheme. Parents will be able to enter their children's matriculation numbers on the proposed platform to confirm whether the fees have been paid or remain outstanding.
The proposed portal will display the payment status without revealing the amount involved or other sensitive financial details. This measure is intended to improve transparency and prevent students from receiving financial support from both NELFUND and their parents for the same tuition fees. The fund is also introducing a digital wallet system that will allow students to authorise tuition payments directly to their institutions.
The digital wallet system will enable approved tuition funds to be linked to the student's institution, and the payment token can only be used to pay that school. This system is intended to prevent the diversion of funds and reduce cases where students pay their fees independently without knowing that NELFUND has already settled the bill. The upgraded payment arrangement is expected to take effect in the 2026/2027 academic session.
NELFUND Executive Director, Mustapha Iyal, said the payment system was being piloted with more than 400,000 applications in the system at the time of the briefing. The fund also plans to organise re-education workshops across Nigeria's six geopolitical zones to explain the changes to students, parents, and tertiary institutions.
The proposed changes come amid efforts by the Federal Government to improve the administration of its student loan scheme, which provides support for approved institutional fees and, separately, upkeep allowances for eligible beneficiaries. NELFUND's announcement does not amount to a blanket ban on students whose parents can afford to pay their fees from applying for loans.
Rather, the measures are intended to prevent duplicate tuition funding and make it easier for parents to establish whether the fees have already been paid. The changes are expected to improve the efficiency and transparency of the student loan scheme, ensuring that funds are utilised effectively and efficiently.
Key points
- NELFUND to introduce a verification portal for parents to check payment status using their children's matriculation numbers.
- The fund to introduce a digital wallet system for tuition payments.
- The upgraded payment arrangement to take effect in the 2026/2027 academic session.
