The Nigerian Education Loan Fund (NELFUND) has announced that it has disbursed a total of ₦107.7 billion to 581,878 student beneficiaries across the country, in a move that is already reducing dropout rates and widening access to tertiary education.

According to the agency, the disbursement covered ₦61.3 billion in institutional fees and ₦46.3 billion in upkeep allowances.

By the close of the 2024/2025 academic session portal on September 30th, 2025, 846,462 applications had been received. The portal is scheduled to reopen in October for the 2025/2026 academic session.

Akintunde Sawyerr, Managing Director, NELFUND, emphasised that the loans are structured on zero interest, a decision taken to make the scheme more attractive in light of economic challenges and public scepticism towards borrowing.

“Given the word ‘loan’ has often carried a negative perception in Nigeria, we deliberately chose to make this scheme interest-free. Our research showed that this would encourage more students to stay in school and pursue tertiary education,” Sawyerr said.

He explained that before the establishment of NELFUND, many students who had spent three or four years in school were forced to drop out due to sudden financial setbacks in their families. The introduction of the scheme, he noted, has significantly reduced dropout rates and encouraged more young people to transition from secondary to tertiary education.

The loan comes with flexible repayment terms. Beneficiaries are not required to make any repayments during their studies or national service year, with repayment obligations beginning two years after completion of the NYSC program.

For those in formal employment, employers are mandated to deduct 10% of the beneficiary’s salary and remit it to NELFUND. However, repayment halts if the individual loses their job, making it effectively a pay-as-you-earn scheme.

Sawyer also stressed that while the terms are soft, the scheme is not a grant. He urged students to be deliberate in choosing courses of study that are aligned with employability and national development needs.

“The word ‘loan’ serves as a reminder that repayment is expected. We want beneficiaries to think carefully about their choices so they can secure careers that enable them to repay comfortably,” he added.

He added that with its interest-free structure and supportive repayment plan, the NELFUND loan scheme is emerging as one of the softest and most student-friendly education finance initiatives, with early evidence showing positive impact on Nigeria’s education retention and access.