September 6, 2026
The Nigerian Education Loan Fund (NELFUND) is making a significant difference in helping Nigerian students remain in higher institutions despite mounting financial pressures, with a new study revealing that 83.7 per cent of applicants said institutional-fee support helped them stay in school.
The finding is contained in a study by the Development Agenda for Western Nigeria (DAWN) Commission, titled “Adoptability and Efficiency of the Nigerian Education Loan Fund (NELFUND) Scheme in Southwest Nigeria.”
The research, conducted among 1,022 students of the University of Ibadan, examined awareness, application and uptake of the student loan scheme, disbursement, operational efficiency and beneficiaries’ experiences.
According to the study, 99 per cent of respondents were aware of NELFUND, while 86.9 per cent agreed or strongly agreed that the scheme could improve access to tertiary education.
Beyond tuition and institutional fees, the study also highlighted the impact of upkeep support. 65.1 per cent of beneficiaries said the allowance had significantly or moderately improved their ability to meet daily expenses and concentrate on their studies.
The findings further showed that NELFUND is reaching students from economically disadvantaged households at a higher rate. Students from households earning below ₦50,000 monthly recorded a 53.7 per cent application rate, compared with 27.3 per cent among students from households earning above ₦1 million monthly.
The digital application process also received encouraging ratings from students, with access to the application portal scoring 4.13 out of 5, submission of applications 3.97, understanding eligibility requirements 3.95 and completion of application forms 3.93.
However, the DAWN Commission identified delays in institutional verification and disbursement as areas requiring further attention.
The commission recommended faster and more predictable disbursement, stronger communication with applicants, clearer information on repayment obligations and improved access to upkeep support.
It also recommended the appointment of a dedicated NELFUND Liaison Officer at the University of Ibadan to assist students, strengthen communication between the institution and NELFUND and help identify administrative bottlenecks.
Significantly, only 13.2 per cent of non-applicants said lack of awareness was responsible for their decision not to apply, indicating that the challenge is increasingly shifting from awareness to ensuring eligible students clearly understand the scheme, its requirements, benefits and repayment arrangements.
The DAWN study therefore presents NELFUND as an increasingly important intervention in Nigeria’s tertiary education system, with its strongest evidence of impact coming directly from beneficiaries who say the support has helped them remain in school.
With 83.7 per cent of applicants affirming that institutional-fee support helped them continue their studies, the findings provide fresh evidence that the student loan scheme is helping cushion the financial burden on students and keeping more young Nigerians on the path to completing their education.
