The Nigerian Education Loan Fund (NELFUND) is introducing a token-based payment system and a parental verification portal to curb double-dipping, prevent duplicate tuition payments and address disputes over refunds under its student loan scheme.

The reforms, under the proposed NELFUND 2.0 initiative, are also designed to improve communication between the Fund, tertiary institutions, students and their families, amid complaints that some beneficiaries remain unaware that their school fees have been paid.

Speaking at a media briefing in Abuja, NELFUND Managing Director and Chief Executive Officer, Akintunde Sawyerr, said the revised system would enable students to authorise payments directly to their institutions rather than receive the money in their personal bank accounts.

According to the agency, a pilot of the system has commenced, with close to 400,000 applications already recorded in the ongoing application process.

Under the arrangement, students will use a mobile application to authorise payments from their approved loan funds to their institutions through tokens linked to their schools.

“The system, the token, not only can they not transfer it to their personal account, they can’t transfer it to any other school,” Sawyerr explained.

He said the initiative was intended to eliminate situations in which students paid their fees without knowing that NELFUND had already transferred the money to their institutions.

“We discovered that there were some issues with students being informed in good time that their payments had been made by NELFUND, which meant that some of them would pay because they hadn’t realised that NELFUND had paid.

“We want to eliminate that need for refunds. So we’re placing the power of payment in the hands of the students,” the managing director said.

He explained that beneficiaries would receive notifications when their approved fees were ready for payment, allowing them to authorise transactions directly through their mobile phones.

NELFUND Director of Operations, Mustapha Iyal, said the system would also discourage students from paying their fees independently while applying for loans in anticipation of collecting refunds later.

“Indirectly, what we are saying is that now there is no refund. There is no refund,” Iyal said.

He said the initiative had commenced with the 2026/2027 academic session, urging students to apply before the deadline to allow sufficient time for processing.

He warned against waiting until examinations were approaching before seeking assistance from the Fund.

Parents to verify school fee payments

Beyond addressing refund disputes, NELFUND plans to introduce a simplified online portal through which parents can check whether their children’s school fees have been paid.

Iyal said the portal would allow parents to enter their children’s matriculation numbers to obtain a basic confirmation of their fee payment status without disclosing the amount involved.

The initiative is intended to address cases in which institutions receive payments from NELFUND but fail to notify the affected students promptly, leaving some beneficiaries unaware that their fees have been settled.

Consequently, some students continue to seek financial assistance from their parents despite the Fund having paid their tuition fees.

The proposed portal is also expected to help prevent students from obtaining money from multiple sources for the same educational expenses.

The reforms come amid concerns that some students collect tuition money from their parents before applying for NELFUND loans and subsequently fail to return the money when the Fund pays their fees.

Under the proposed arrangement, parents would have a means of independently checking payment status rather than relying solely on information provided by their children or institutions.

The effectiveness of the portal will, however, depend on accurate institutional records, timely updates and appropriate safeguards for students’ personal information.

*Regional workshops to improve implementation*

As part of the NELFUND 2.0 initiative, the agency is planning two-day workshops across the six geopolitical zones to strengthen implementation of the revised application and payment systems.

The workshops, themed ‘NELFUND 2.0: Transforming Access, Simplifying Applications, Empowering Students’, will bring together institutional heads, bursars, desk officers, information technology administrators, students, regulatory bodies, community representatives, the media and NELFUND officials.

Sawyerr said the engagement would equip stakeholders with the knowledge and practical skills needed to improve application processing, strengthen student verification, reduce errors and enhance service delivery.

Institutional leaders are expected to provide executive support, while bursars and desk officers will align administrative procedures. IT personnel will focus on technical readiness, with students and community representatives helping to improve awareness of the scheme.

The workshops are also expected to establish regional support contacts for resolving technical and operational problems.

Sawyerr said the Fund wanted to prevent situations in which institutions failed to accept or properly process payments made on behalf of beneficiaries.

The emphasis on institutional cooperation reflects the fact that successful loan administration depends on several parties. Delays in verification, payment reconciliation or notification can create difficulties for students even after their applications have been approved.

*NELFUND disbursements reach N372.62b*

The proposed reforms come as NELFUND manages a substantial volume of applications and disbursements under the student loan scheme.

Its latest detailed dashboard report, as of October 3, 2026, recorded 1,659,853 processed applications across 319 beneficiary institutions.

The report listed N192.89 billion in institutional fee payments and N179.73 billion in upkeep allowances, bringing total disbursements to N372.62 billion.

The figures highlight the scale of the scheme and the need for accurate records, efficient payment processing and timely communication among the Fund, institutions and beneficiaries.

As applications and disbursements increase, errors in verification, payment reconciliation or beneficiary notifications could create avoidable complications for students and their families.

The token system and proposed parental portal therefore represent an attempt to strengthen accountability beyond the digitisation of applications, although their success will depend on effective implementation and cooperation from participating institutions.

*NANS backs token payment system*

The National Association of Nigerian Students (NANS) has welcomed the introduction of the token payment system, describing it as a step towards improving transparency, accountability and efficiency in student loan disbursements.

NANS Public Relations Officer, David Obidah, told The Guardian that the innovation could address persistent challenges associated with tuition payments, including duplicate transactions and delays in confirming fees already paid by the Fund.

“We commend the Nigerian Education Loan Fund (NELFUND) for introducing its Token Payment System. It is a commendable and forward-looking innovation aimed at strengthening transparency, accountability and efficiency in student loan disbursements,” Obidah said.

He said the system could strengthen financial accountability and protect students from administrative lapses that sometimes prevent them from registering for courses, sitting examinations and accessing other essential academic services despite their tuition fees having been covered by NELFUND.

According to him, delays in reconciling and confirming tuition payments by some tertiary institutions have created difficulties for beneficiaries, even after the Fund has released the required money.

“Such administrative lapses can place students in difficult situations, with some encountering obstacles in registering for courses, accessing examinations and completing other essential academic activities despite having their tuition fees covered by the Fund,” he said.

Obidah said effective implementation of the system would minimise discrepancies between NELFUND’s disbursement records and institutional payment records, making it easier to identify and resolve errors, delays and unexplained irregularities.

He added that the system could provide students with clearer evidence of tuition payments and protect them from administrative failures beyond their control.

On refunds, the NANS spokesman said a transparent and traceable process would help establish the amounts involved, monitor transactions and ensure that money reached the rightful beneficiaries promptly.

“Regarding the ease of payment for students, NANS believes the system has the potential to simplify the process considerably, provided it is supported by effective implementation and full cooperation from tertiary institutions,” he said.

He urged NELFUND to ensure that the system remained accessible, reliable and responsive to beneficiaries’ needs, while calling on tertiary institutions to reconcile payments promptly, update student portals and resolve discrepancies without unnecessary delays.

Obidah commended Sawyerr and the Fund’s management for introducing the innovation, expressing confidence that effective implementation would strengthen financial accountability and public confidence in the student loan scheme.

He urged the agency to sustain innovations that prioritise students’ welfare, safeguard financial integrity and guarantee uninterrupted access to education.