A recent claim by former Kogi West Senator, Dino Melaye, that the Federal Government provides students with only N20,000 under its student loan scheme has been deemed misleading. The amount represents the monthly upkeep allowance, not the total value of the loan or school fees paid by the Nigerian Education Loan Fund (NELFUND). According to NELFUND, the ₦20,000 figure cited by Melaye is the approved monthly upkeep allowance for eligible beneficiaries, not the amount provided for annual tuition or institutional charges.
The Students Loans (Access to Higher Education) Act, 2024, provides for loans to cover tuition, fees, and other charges payable to higher institutions, as well as a maintenance allowance payable directly to students. NELFUND distinguishes between institutional charges and upkeep in the administration of the scheme, with approved institutional charges paid directly to the beneficiary’s institution, while the upkeep component is paid into the student’s bank account. This distinction is crucial in understanding the structure of NELFUND’s student loan scheme.
In March 2026, NELFUND clarified that the approved upkeep allowance remained N20,000 monthly, following reports that the amount had been increased to N25,000. The Fund had commenced payment of the monthly allowance to beneficiaries in 2024, while payments for institutional charges were treated separately. This clarification highlights that the N20,000 figure is not a one-time payment, but rather a monthly allowance.
An eligible student who applies for institutional charges and upkeep does not receive a total of only N20,000 for the academic year. The institution may receive the approved amount for the student’s tuition and other eligible charges, while the student receives the monthly upkeep allowance. This structure means that Melaye’s statement appears to combine two separate components of the student loan scheme, leading to confusion.
Several videos and social media posts from students have emerged showing beneficiaries celebrating after receiving the N20,000 monthly NELFUND upkeep allowance. Students of various universities, including Bayero University, Kano, and University of Ilorin, have publicly acknowledged receiving the upkeep allowance, with some explaining that they intend to use the money for food, transportation, and other basic expenses. These testimonials provide further evidence that the N20,000 is being disbursed as a monthly upkeep allowance.
Melaye’s broader criticism of the adequacy of the upkeep allowance is a matter of policy and opinion. Whether N20,000 monthly is sufficient to meet students’ living expenses amid rising costs can legitimately be debated. However, this debate is separate from the factual question of what the N20,000 represents. The available evidence shows that NELFUND does not operate a scheme in which N20,000 is the annual amount provided to students for tuition.
In conclusion, the N20,000 figure cited by Senator Melaye is genuine, but it is not the annual amount the agency gives students for school fees. It is the monthly upkeep allowance, while NELFUND’s student loan scheme separately provides for approved tuition, fees, and other institutional charges, which are paid directly to the beneficiary institution. This distinction is essential in understanding the structure and benefits of NELFUND’s student loan scheme.
Key points
- The N20,000 monthly upkeep allowance is a separate component of the student loan scheme from institutional charges.
- NELFUND’s student loan scheme provides for approved tuition, fees, and other institutional charges, which are paid directly to the beneficiary institution.
- The ₦20,000 figure represents the monthly upkeep allowance, not the annual amount provided for school fees.
