Many students at Obafemi Awolowo University, Ile-Ife, who applied for the Nigerian Education Loan Fund (NELFUND) loan scheme, on Saturday, 20 December, logged into their school portals to discover an unexpected development: their school fees for the 2024/2025 academic session had been fully credited, and they could now proceed with their course registration. For several students, the update came as a surprise and a relief, especially amid rising tuition costs and the persistent financial strain faced by undergraduates across Nigerian universities.
The Nigerian Education Loan Fund is a federal student loan programme designed to ease the burden of tuition and upkeep for undergraduates. Since its introduction, the scheme has generated widespread attention among students, accompanied by optimism, confusion, and scepticism. While some see it as long-awaited relief, others view it cautiously, often describing it jokingly as ‘national cake,’ a phrase reflecting both excitement and distrust.
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The legal framework for the loan scheme was established with the enactment of the Student Loans (Access to Higher Education) Act in 2023, which was repealed and re-enacted in 2024. The policy became fully operational in May 2024. Government officials have described it as a transformative intervention aimed at expanding access to tertiary education through interest-free loans for eligible students.
For many undergraduates, the policy initially sounded promising. However, as implementation unfolds, questions persist regarding repayment terms, long-term financial consequences, and whether the scheme addresses affordability or merely postpones it.
In a release dated December 15, the Division of Student Affairs, Office of the Dean of Students, confirmed that loan funds had been disbursed to the university for the 2023/2024 academic session. According to the statement, a sum of four hundred and thirty-nine million, nine hundred and twenty-nine thousand naira (₦439,929,000.00) was received for four thousand, seven hundred and sixty-five (4,765) students who successfully processed the loan. The notification followed an official communication forwarded to the Vice-Chancellor on November 10, acknowledging receipt of the funds.
Students’ Reactions: Relief on the Ground
For many beneficiaries, the portal update brought immediate relief. Ademola Adedokun, a student of the university, described the development as a major breakthrough for students struggling to finance their education. ‘Some students are honestly relieved,’ he said. ‘Imagine not having to beg your uncle, juggle multiple side jobs, or worry about missing exams because you couldn’t register without paying school fees. Seeing the portal reflect ‘paid’ felt like a real win. For once, it felt like the government actually came through, and at the right time.’
A 300-level student said the update exceeded her expectations. ‘I honestly did not think it would happen this year,’ she said. ‘I assumed it would reflect next year. For students from low-income backgrounds like mine, this feels like a genuine lifeline and real access to education.’
Similarly, Adekunle Adewale, a Part Two student of Broadcast Journalism, expressed excitement over the development. ‘I was sceptical at first, even after receiving the upkeep allowance,’ he explained. ‘I thought the school fees would take much longer, so I was already planning to source the money elsewhere. Then I saw the message that the fees had been disbursed. When I logged into my portal and saw that the fees were paid, I was shocked. I could finally register for my courses. I’m genuinely happy and grateful. Applying for the loan turned out to be one of my best decisions.’
Prince, a Part Four student, said the development had influenced his decision to apply. ‘I will definitely apply for it,’ he said. ‘Even though my parents have already paid my fees, the loan will help me manage other expenses, and hopefully our own will be disbursed to our account soon.’
Lingering Concerns
Despite the excitement, not all students are convinced. Bello Muhammad Olamide, a Part Two student of Public Administration, expressed reservations about the long-term implications of the loan scheme. ‘I feel the loan may have negative effects in the future,’ he said. ‘Repayment obligations could create financial pressure after graduation, especially when employment is not guaranteed immediately. I believe loans should only be taken when absolutely necessary. That said, I do not discourage those who genuinely need it.’
He added that he chose not to apply because alternative financial support was already available to him. ‘At the time, my parents and I had a plan in place to cover my expenses. I didn’t want to take on a loan I didn’t fully need. If circumstances change, I will consider it later.’
Another student, Oni Ayomide, voiced concern over what she described as a misunderstanding of the scheme among some applicants. ‘This is not a grant; it is a loan,’ she said. ‘Some students are applying without their parents’ knowledge, treating it like free money. I worry that this could become a form of financial bondage in the future.’
Some students have also joked that the scheme may soon become the only viable way to remain enrolled, a notion that reflects both reliance on the programme and unease about the sustainability of tertiary education funding.