Nigeria’s student financing landscape is undergoing one of its biggest transformations in decades as the Nigerian Education Loan Fund (NELFUND) expands access to tertiary education through a government-backed loan scheme that has attracted more than 1.6 million applications.
The programme, launched to reduce financial barriers facing students in public tertiary institutions, has so far channelled hundreds of billions of naira towards institutional fees and student upkeep. But beyond the size of the funding, attention is increasingly shifting to a bigger question: is the intervention keeping more Nigerians in school and improving their chances of graduating?
The Managing Director and Chief Executive Officer of NELFUND, Akintunde Sawyerr, says available studies indicate that the scheme is already reducing dropout levels and helping students who might otherwise have abandoned their education remain within the tertiary system.
However, education experts and stakeholders continue to debate how the long-term success of the programme should be measured whether by the amount disbursed, the number of beneficiaries reached, graduation rates, employment outcomes or the quality of education received.
The scale of the intervention has grown significantly since the launch of the NELFUND student loan portal in May 2024.
According to the latest figures released by the Fund, NELFUND has processed 1,659,853 applications and disbursed about ₦355.87bn to students and government-owned tertiary institutions.
The breakdown shows that approximately ₦192.89bn has been paid directly to 319 beneficiary institutions for institutional charges, while about ₦162.98bn has gone to students as upkeep allowances.
The funding structure reflects the programme’s dual purpose: supporting schools to receive approved charges while providing students with financial assistance for living expenses during their studies.
NELFUND beneficiaries currently receive monthly upkeep support, with the Fund reporting that it spends billions of naira monthly on student allowances.
Sawyerr argues that the real measure of the programme should not simply be the volume of money distributed but whether financial assistance changes educational outcomes.
Speaking on Channels Television, he said research conducted around the scheme showed that it had contributed to improved student retention.
He cited a study by DAWN which, according to him, found that 84 per cent of respondents were able to continue within tertiary education because of the loan programme. He also stated that other research indicated a 20 per cent reduction in dropout rates.
The figures, however, represent NELFUND’s interpretation of available studies rather than a publicly established national dropout measurement. Independent assessment of the programme’s effect will depend on access to the underlying research methods, sample sizes and comparison data.
The debate around NELFUND comes at a time when Nigeria’s tertiary education system faces multiple challenges, including funding shortages, infrastructure gaps, industrial disputes and concerns about graduate employability.
Sawyerr has argued that improving access alone is not enough if students experience disruptions that affect learning outcomes.
He said the quality of tertiary education is affected when students repeatedly experience interruptions in their academic journey, noting that stability within the education system is necessary alongside financial support.
The NELFUND chief executive has also indicated that the Fund is looking beyond financing enrolment by considering how education choices connect with labour market needs.
According to him, future funding decisions may place greater emphasis on courses, skills demand and employment opportunities after graduation.
One of the changes attributed to the student loan programme is the way tertiary institutions respond to students experiencing financial difficulties.
Sawyerr said some institutions previously relied on internal support mechanisms and donations to assist students struggling with fees, but many now direct eligible students towards NELFUND.
The shift represents a move from institution-specific assistance models towards a centralised national student financing system.
While supporters of the scheme argue that student loans expand opportunity, critics have raised questions about repayment obligations and whether loans are the best solution for Nigeria’s higher education challenges.
NELFUND has maintained that repayment is designed around beneficiaries’ ability to pay and is not expected to begin immediately after graduation. Sawyerr has said repayment arrangements are tied to employment circumstances.
The debate reflects a broader policy question facing many countries: how to expand access to higher education while ensuring that financing systems remain sustainable.
For NELFUND, the next stage may be less about expansion and more about measuring outcomes.
With more than one million applications processed and hundreds of billions already committed, policymakers will increasingly face questions about whether beneficiaries complete their studies, secure meaningful employment and contribute to economic growth.
The student loan programme has undoubtedly become one of Nigeria’s largest education interventions in recent years. Its ultimate assessment, however, will depend not only on how much money reaches students but on what those students achieve after receiving support.