NELFUND to Pay Tuition Fees Through Students, Announces New Payment Method

The Nigerian Education Loan Fund (NELFUND) has announced plans to replace its current system of paying tuition fees directly to tertiary institutions with a digital token-based payment system aimed at improving transparency and eliminating cases of double payment.

The Managing Director of NELFUND, Akintunde Sawyerr, disclosed the development during an interview on ARISE News on Sunday. He explained that the proposed system would allow students to initiate the payment of their tuition fees themselves using a digital token stored on their mobile phones.

According to Sawyerr, students will present the token at their institution's bursary and authorize the payment with a simple action on their phones. Once the transaction is completed, the tuition fee will be transferred directly to the institution, allowing students to continue with their academic activities.

He noted that the new payment model is part of broader reforms aimed at addressing challenges experienced during the first year of the student loan programme. These challenges included cases where students paid their tuition fees before NELFUND processed their loans, leading to double payments when the agency later remitted funds to the institutions.

Sawyerr stated that once the digital token system becomes operational, NELFUND will no longer make tuition payments directly to schools. Instead, students will control the payment process while the funds remain restricted for educational purposes.

He also explained that the agency deliberately chose not to transfer tuition loan funds directly into students' bank accounts to prevent the diversion of the money for non-educational purposes.
According to him, the primary objective of the student loan scheme, introduced under the administration of President Bola Ahmed Tinubu, is to ensure that qualified Nigerians are not denied access to tertiary education because of financial challenges.

The NELFUND boss added that the agency is aligning its application and payment cycles with academic calendars to reduce delays and improve efficiency. He expressed confidence that the new digital token system would strengthen accountability, enhance transparency, and improve the overall administration of Nigeria's student loan programme as the number of beneficiaries continues to increase.