Key Points

• NELFUND student loan disbursement reaches ₦116 billion after one million verified applicants.

• NELFUND student loan disbursement targets students in public tertiary and technical institutions.

• The scheme marks Nigeria’s boldest higher-education funding initiative in decades.

The Nigerian Education Loan Fund (NELFUND) has approved and given out ₦116 billion in student loans after receiving a record one million applications from students all over the country. This is a big step forward for President Bola Tinubu’s goal of making college more accessible through his administration’s Renewed Hope Agenda.

The program, which started in early 2025, gives interest-free loans to college students and vocational trainees who go to public schools. It is part of a larger set of changes meant to fix problems with education and youth unemployment in Africa’s biggest economy.

Akintunde Sawyer, the Managing Director of NELFUND, said on Thursday in Abuja that the fund had received verified applications from 126 universities, 152 polytechnics, and 98 colleges of education. He said that the loan would cover tuition and living expenses, and repayment would start two years after graduation or when the borrower gets a job.

How NELFUND’s student loan disbursement is changing who can go to school

The NELFUND student loan disbursement is the biggest effort to improve education financing in Nigeria’s history. Sawyer said that more than 80 percent of the people who applied were from low-income families. Many of them had borrowed money informally to pay for school fees in the past. “We’re not just giving loans; we’re giving hope,” he said. He also said that the plan had built-in checks through the Joint Admissions and Matriculation Board (JAMB) and the Bank Verification Number (BVN) to stop fraud and delays.

Problems that are making the loan rollout process take longer

Even though the numbers are good, the process hasn’t gone smoothly. Some applicants have had trouble with digital verification, especially in rural areas where internet access is bad. The National Association of Nigerian Students (NANS) and other student groups have asked the government to let more people go to private universities and graduate programs. Sawyer said that talks were still going on with the Ministry of Education and the Central Bank of Nigeria to deal with these issues and make the payment systems stronger.

What NELFUND means for Tinubu’s plans to change education

People are praising the NELFUND student loan program as a key part of Tinubu’s reforms for education and economic inclusion. Analysts say that the policy could help lower Nigeria’s high dropout rates, which UNESCO estimates to be 35 percent among young people of tertiary age. The government wants to create a more skilled workforce that can meet the needs of new industries by closing financial gaps.

The program is more than just a number for millions of young Nigerians; it’s a way to stay alive. Grace Oladele, a first-year student at the University of Lagos, said, “Without this help, I would have put off my admission.” “Now I can study without worrying about being sent home for not paying my fees.”