NELFUND denies upkeep halt, plans token system
Nigeria's student loan agency is battling disbursement delays and misinformation as it prepares to implement a digital token payment system to improve transparency.
The Nigerian Education Loan Fund has publicly denied rumors that the government suspended student upkeep allowances. However, ongoing disbursement delays continue to strain beneficiaries and generate operational risks.
A forged document dated July 10, falsely attributed to NELFUND Director of Strategic Communications Oseyemi Oluwatuyi, claimed funding for May, June, and subsequent months was withheld. NELFUND stated the notice is fake and that disbursements are continuing.
“The document being circulated is fake and did not emanate from NELFUND. Beneficiaries and the general public should disregard the misinformation and rely only on NELFUND’s official communication channels for authentic updates,” the agency said.
Despite the official denial, the rumor stems from genuine payment bottlenecks within the federal Student Loan Scheme. Beneficiaries report they have not received their optional monthly upkeep stipends since May.
“When will we, the students, start to receive upkeep allowance for May and June? A lot of Nigerian students need this money, most especially me, now. Students are going for SIWES, and they need this money to be able to attend this compulsory student industrial scheme,” said Favour Ojochenemi, a beneficiary.
“For the past three months we haven’t received our upkeep and everyone knows this is a loan. So how are we going to pay for what we haven’t been given?” said Alex Bless, another student.
Parent Modupeola Adeola Idowu, who identified as a widow, warned that the missing payments have caused severe financial distress. She also expressed fears that tuition disbursements might similarly stall.
To address underlying structural inefficiencies, NELFUND Managing Director Akintunde Sawyerr announced earlier this month a transition to a digital token-based payment system. The fund currently pays tuition fees directly to public tertiary institutions.
The proposed token system is intended to eliminate double payments and strengthen transparency. It will also allow students to control the timing of their tuition payments while ensuring loan capital is restricted to educational expenses.
NELFUND warned that artificial intelligence and fabricated publications are being actively deployed to undermine public confidence in the programme. The agency is navigating these misinformation threats as it implements its new payment infrastructure.
