FG Issues New NELFUND Loan Guidelines, Projects Wider Access for Students

The Federal Government has unveiled revised guidelines for the Nigerian Education Loan Fund (NELFUND) to streamline disbursement, strengthen accountability, and expand access to more students in tertiary institutions across the country.

The new framework, presented by the Minister of Education, Dr. Maruf Alausa, introduces a harmonised structure for loan applications and repayment, addressing delays and inconsistencies observed in the previous process.

According to the ministry, the guidelines provide strict timelines for loan application processing, institutional verification, and fund release. Tuition fees and other institutional charges will now be paid directly to schools, while upkeep allowances may be credited to students.

Alausa explained that the reforms include a unified fee structure across institutions, a standard refund policy for withdrawals, and a real-time monitoring system linked to the Treasury Single Account (TSA) of the Central Bank of Nigeria. “This approach is designed to reduce bureaucratic bottlenecks and ensure equitable access for all eligible students,” he said.

Under the repayment terms, graduates are expected to begin servicing their loans two years after completing the National Youth Service Corps (NYSC), with a 10 percent deduction from monthly income through pay-as-you-earn and self-employment channels.

NELFUND’s Managing Director, Akintunde Sawyerr, noted that the scheme is built on income-based repayment and compliance with the Nigeria Data Protection Act 2023, ensuring transparency and sustainability.

The Ministry of Education further disclosed that institutions are required to verify student details within 20 working days, with sanctions for non-compliance. A student feedback mechanism has also been introduced to strengthen monitoring and evaluation.

So far, government data indicates that over 449,000 students have benefited from earlier loan disbursements amounting to ₦86 billion. With the new guidelines in place, the administration projects that access could be extended to over two million students in the coming phases.