NELFUND switches to Per-Session upkeep payments to boost efficiency, transparency

The Nigerian Education Loan Fund (NELFUND) has unveiled a revised structure for disbursing upkeep allowances under its student loan scheme, shifting from a 12-month payment model to a per-academic-session approach.

The change is designed to improve efficiency, transparency, and timeliness for beneficiaries.

NELFUND explained that the transition addresses challenges arising from varying academic calendars across Nigeria’s tertiary institutions.

Under the previous system, a uniform 12-month schedule often created delays and mismatches between disbursements and academic sessions.

“By aligning upkeep disbursements with each institution’s academic session, we can ensure payments are made to students in a timely and relevant manner,” the agency said in a statement.

Another key objective of the per-session system is to eliminate duplicate payments, which have historically led to administrative inefficiencies and misallocation of funds.

NELFUND stressed that the new approach would help maintain the integrity of its payment system.

“The policy ensures that funds are utilised effectively, reducing the risk of duplicate payments and minimising administrative errors,” NELFUND added.

Benefits for Students, Parents, and Institutions

The agency highlighted several advantages of the revised payment structure: which include fairness and transparency as upkeep payments are now aligned with each institution’s academic schedule, ensuring equitable access for all students; timely disbursements as students will receive allowances in sync with their academic sessions, allowing them to focus on studies without financial distractions and enhanced accountability, such that updated NELFUND portals will automatically reflect upkeep loans collected by each student per session, simplifying verification for parents and institutions.

“We remain committed to a transparent and efficient process for managing the student loan scheme. Our operations are guided by fairness, accountability, and transparency,” the agency said, stressing its dedication to supporting students while safeguarding the sustainability of the loan fund.

NELFUND also emphasized the long-term benefits of the reform, noting that it would strengthen the integrity of the student loan programme while improving stakeholders’ confidence in the system.

“We believe this policy will translate to positive impact on the student loan scheme, benefiting both students and partner institutions. We look forward to continuing our work with stakeholders to ensure the scheme’s long-term success and sustainability,” the agency concluded.