# Nigeria NELFUND student loan program

> Live situation record from CLSTR: https://clstr.news/situations/nigeria-nelfund-student-loan-program
> Updated: 2026-09-09T00:12:19.000Z. Sources: 15. Developments: 3.

The Nigerian Education Loan Fund (NELFUND) has disbursed N355.87 billion in student loans since its portal launched in May 2024. As of September 2026, the fund has processed approximately 1.66 million applications, with N192.89 billion paid to institutions for tuition and N162.98 billion provided to students for upkeep. Managing Director Akintunde Sawyerr noted that the fund is exploring various financing channels to ensure sustainability, including the potential use of recovered public funds such as unclaimed dividends and dormant accounts. The program is a zero-interest facility where repayments begin two years after the completion of the National Youth Service Corps (NYSC). Under the Student Loans (Access to Higher Education) Act, repayment is only required once a beneficiary is gainfully employed, with monthly deductions capped at 10 per cent of gross income. NELFUND has dismissed viral claims suggesting that students who default on loans face life imprisonment, labeling doctored images of President Bola Tinubu announcing such penalties as “fake news.”

Concerns regarding the program’s long-term viability have been raised by the iRead To Live Initiative, which warned that the N355.87 billion disbursed to roughly 850,000 beneficiaries faces significant recovery risks. In September 2026, the scheme faced scrutiny following remarks by Mrs. Oluremi Tinubu, who suggested beneficiaries could “start small” by engaging in petty trading, such as selling akara and kuli kuli, to support themselves. 

Vice President Kashim Shettima has defended the fund as a “landmark initiative” and a “vital social equalizer” designed to alleviate poverty by removing financial barriers to higher education. However, critics continue to debate whether a loan-based system is the appropriate response to an affordability crisis driven by inadequate public investment in the education sector.

## Timeline

### 2026-09-09: Nigeria's NELFUND student loan scheme draws praise and debate

Vice President Kashim Shettima praised the NELFUND student loan scheme as a tool for social equality, while critics debate the adequacy of the fund and the ethics of student debt in Nigeria.

4 sources. https://clstr.news/cluster/nigerias-nelfund-student-loan-scheme-faces-scrutiny

### 2026-09-06: NELFUND debunks life imprisonment claims and faces loan recovery warnings

NELFUND has debunked fake news claiming student loan defaulters face life imprisonment, while experts warn that N355.87bn in disbursed loans faces recovery risks due to structural gaps.

9 sources. https://clstr.news/cluster/nelfund-debunks-false-claims-of-life-jail-for-student-loan-defaulters

### 2026-09-03: NELFUND disburses N355.87 billion in student loans

NELFUND has disbursed N355.87 billion in student loans to Nigerian students since May 2024, processing over 1.66 million applications to support tuition and living expenses.

5 sources. https://clstr.news/cluster/nelfund-disburses-n35587-billion-in-student-loans

---
Cite as: Nigeria NELFUND student loan program. CLSTR, https://clstr.news/situations/nigeria-nelfund-student-loan-program