A claim by former Kogi West Senator and African Democratic Congress (ADC) chieftain, Dino Melaye, that the Federal Government gives students only N20,000 under its student loan scheme is misleading, as the amount represents the monthly upkeep allowance and not the total value of the loan or school fees paid by the Nigerian Education Loan Fund (NELFUND).

Melaye, while criticising the administration of President Bola Tinubu and the implementation of the student loan scheme, was quoted as saying: “Why is Tinubu claiming he’s paying students’ school fees when he’s giving them only N20,000?”

He also asked: “Which government school takes N20,000 as annual school fees?

The statement was reported by Daily Post on September 28, 2026, in a story titled, “NELFUND haven of corruption, giving students only N20,000 — Dino Melaye.”

N20,000 is monthly upkeep, not tuition

However, available information from NELFUND and the legal framework establishing the student loan scheme shows that the ₦20,000 figure cited by Melaye is the approved monthly upkeep allowance for eligible beneficiaries. It is not the amount NELFUND provides for annual tuition or institutional charges.

The Students Loans (Access to Higher Education) Act, 2024, provides for loans to cover tuition, fees and other charges payable to higher institutions, as well as a maintenance allowance payable directly to students.

NELFUND also distinguishes between institutional charges and upkeep in the administration of the scheme. Approved institutional charges are paid directly to the beneficiary’s institution, while the upkeep component is paid into the student’s bank account.

The N20,000 figure, therefore, represents the maintenance or upkeep component of the loan.

In March 2026, NELFUND clarified that the approved upkeep allowance remained N20,000 monthly, following reports that the amount had been increased to N25,000.

The Fund had commenced payment of the monthly allowance to beneficiaries in 2024, while payments for institutional charges were treated separately.

How NELFUND’s loan is structured

This means that an eligible student who applies for institutional charges and upkeep does not receive a total of only N20,000 for the academic year.

The institution may receive the approved amount for the student’s tuition and other eligible charges, while the student receives the monthly upkeep allowance.
The distinction is important because Melaye’s statement appears to combine two separate components of the student loan scheme.

Senator Melaye’s question about whether any government-owned university charges N20,000 as annual school fees would be valid only if the N20,000 were intended to represent the entire tuition support. Under NELFUND’s structure, however, it does not.

There is also a problem with describing the N20,000 as a yearly payment. NELFUND has consistently described the amount as a monthly upkeep allowance. At N20,000 monthly, a beneficiary receiving the allowance for 12 months would receive N240,000 in upkeep during that period, although the actual duration and disbursement of payments may depend on the terms of the approved loan and the student’s eligibility.

The scheme is a loan rather than a grant, meaning beneficiaries are required to repay the applicable loan in accordance with the provisions of the law and the terms of the agreement.

Students celebrate N20,000 upkeep payments across varsities

Several videos and social media posts from students have emerged showing beneficiaries celebrating after receiving the N20,000 monthly NELFUND upkeep allowance.

The reactions were particularly documented in 2024, when NELFUND made its first batches of upkeep payments. Students of Bayero University, Kano; Federal University, Dutsin-Ma; University of Ilorin; University of Benin; University of Ibadan; and University of Maiduguri were among those who received payments.

At the University of Ilorin, a student said he initially thought the payment alert was a scam before checking his account and confirming that the funds had been credited by NELFUND. He subsequently celebrated the payment with friends.

Similarly, students of the University of Ibadan and University of Maiduguri publicly acknowledged receiving the upkeep allowance, with some explaining that they intended to use the money for food, transportation and other basic expenses.

NELFUND’s beneficiary testimonials have also featured students from institutions including the University of Calabar and Ahmadu Bello University, confirming receipt of upkeep payments.

The emergence of the videos and testimonials provides further evidence that the N20,000 is being disbursed as a monthly upkeep allowance, separate from institutional charges covered under the student loan scheme.

Claim on school fees is misleading

Melaye’s broader criticism of the adequacy of the upkeep allowance is a matter of policy and opinion. Whether N20,000 monthly is sufficient to meet students’ living expenses amid rising costs can legitimately be debated. But that debate is separate from the factual question of what the N20,000 represents.

The available evidence shows that NELFUND does not operate a scheme in which N20,000 is the annual amount provided to students for tuition. Rather, the amount is the monthly upkeep component, while approved institutional charges are handled separately and paid directly to the institutions.

Verdict: Misleading

The N20,000 figure cited by Senator Melaye is genuine, but it is not the annual amount the agency gives students for school fees. It is the monthly upkeep allowance. NELFUND’s student loan scheme separately provides for approved tuition, fees and other institutional charges, which are paid directly to the beneficiary institution.