The Nigerian Education Loan Fund (NELFUND) is helping to keep students in higher institutions despite rising financial pressures, with 83.7 per cent of beneficiaries saying support for institutional fees helped them remain in school, a new study by the Development Agenda for Western Nigeria (DAWN) Commission has found.

The finding is contained in a study of 1,022 students of the University of Ibadan, providing fresh evidence of the impact of the Federal Government’s student financing scheme and its potential to expand access to tertiary education.

The study, titled “Adoptability and Efficiency of the Nigerian Education Loan Fund (NELFUND) Scheme in Southwest Nigeria,” examined students’ awareness of the scheme, application and uptake, disbursement, operational efficiency and their experiences as beneficiaries.

According to the report, awareness of NELFUND among the students was almost universal, with 99 per cent saying they had heard of the scheme.

Beyond awareness, 86.9 per cent of respondents agreed or strongly agreed that NELFUND could improve access to education, indicating strong confidence in its ability to ease the financial burden facing students and their families.

The strongest evidence of its impact, however, came from beneficiaries of the institutional-fee component. The study found that 83.7 per cent of applicants said NELFUND’s support had helped them continue their studies either significantly or moderately.

 

The upkeep component also recorded a substantial impact, with 65.1 per cent of beneficiaries saying the assistance had significantly or moderately improved their ability to meet daily living expenses and concentrate on their studies.

The findings strengthen the case for student financing as a tool for preventing financial hardship from forcing young Nigerians out of higher education.

The study also found that NELFUND is reaching a significant proportion of students from lower-income households.

Students from families earning less than N50,000 monthly recorded an application rate of 53.7 per cent, compared with 27.3 per cent among students from households earning more than N1 million monthly.

The researchers said the pattern was broadly consistent with NELFUND’s objective of supporting students who require financial assistance to pursue tertiary education.

The report gave relatively positive ratings to the student-facing aspects of the Fund’s application process.

Students rated access to the NELFUND application portal 4.13 out of five, while submission of applications scored 3.97. Understanding eligibility requirements received 3.95, while completion of application forms scored 3.93.

The researchers said the scores suggested that the digital application process had become relatively accessible, with the more significant challenges occurring around institutional verification and the subsequent release of funds.

Although the study identified delays in some disbursements, the DAWN Commission said the findings presented an opportunity for NELFUND and participating institutions to strengthen the scheme.

It recommended faster and more predictable disbursement of funds, better communication with applicants during processing, clearer information on repayment obligations and improved access to upkeep support.

The commission also recommended the appointment of a dedicated NELFUND Liaison Officer at the University of Ibadan to assist students, improve communication between the university and the Fund and identify administrative bottlenecks.

The study found that only 13.2 per cent of students who had not applied for NELFUND blamed their decision on lack of awareness.

The researchers said this suggested that the challenge was shifting from simply making students aware of the existence of NELFUND to ensuring that eligible students understand its benefits, eligibility criteria and repayment requirements.

More than half of the non-applicants, they observed, could potentially be encouraged to apply through better information and support.

While identifying areas requiring improvement, the DAWN study concluded that NELFUND has significant potential to transform access to tertiary education.