While the Nigerian Education Loan Fund (NELFUND) has successfully disbursed over ₦206 billion to 1.16 million students since its inception, the scheme is facing growing criticism from parents and beneficiaries over the perceived inadequacy and persistent irregularity of the ₦20,000 monthly upkeep allowance.
The Nigerian Education Loan Fund (NELFUND) has marked a significant milestone in its second year of operations, having disbursed over ₦206 billion to 1.16 million beneficiaries across 270 public tertiary institutions nationwide as of March 2026. Data reveals that of the total funds, ₦128.84 billion was paid directly to institutions for tuition fees, while ₦77.45 billion was earmarked for student upkeep allowances. Despite these impressive figures, derived from a pool of over 1.75 million applicants, the scheme is navigating a wave of public backlash. Critics and beneficiaries have pointed out that the ₦20,000 monthly stipend is increasingly insufficient to cover basic needs in the face of Nigeria’s current high cost of living, with many calling for a review of the allowance to reflect economic realities.
Beyond the amount itself, a more pressing concern for many stakeholders is the alleged irregularity and inconsistency in the disbursement of these monthly stipends. Parents of students at high-profile institutions, including the Federal University of Technology, Akure (FUTA) and the University of Lagos (UNILAG), have reported significant gaps in payments. Mr. Adebola, a parent of a FUTA student, highlighted a “breach of trust,” noting that despite his daughter being in her 400-level, she had only received the allowance twice. “So far, while the school fee payment has been consistent… there has been a breach of trust in the payment of the monthly upkeep allowance. She has only been paid that twice, and she is now in 400-level at FUTA. What happened to the other months she ought to have been paid?” he queried during an interview with Vanguard Learning.
The administrative lapses have sparked fears among guardians that their wards may eventually be held liable for loans they never fully received. Mrs. Odesola, whose son studies at UNILAG, echoed these concerns, suggesting that the lack of transparent records regarding the actual amount collected could lead to future disputes. “We all know it is a loan and if there is an assurance that proper and adequate record is kept that will show how much a student actually collected, there is no problem. But you never can say in this country, you may be asked to pay for what you did not consume or use,” she stated. While NELFUND has largely resolved the initial hiccups associated with direct tuition payments, the growing outcry over the “inconsistent” upkeep component suggests that the fund must improve its commercial alignment to maintain public confidence ahead of the next academic cycle.
NELFUND Performance Snapshot (March 2026)
| Metric | Data Point |
| Total Disbursed | ₦206.29 Billion |
| Total Beneficiaries | 1,160,000 Students |
| Tuition (Direct to School) | ₦128.84 Billion |
| Upkeep (Direct to Student) | ₦77.45 Billion |
| Monthly Stipend Amount | ₦20,000 |
| Primary Complaint | Irregularity & Inadequacy of Upkeep |
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