The Nigerian Education Loan Fund (NELFUND) is providing a critical financial lifeline to students across Nigeria, with a new study showing that nearly 84 per cent of beneficiaries at the University of Ibadan said the scheme helped them remain in school.
The finding was contained in a study conducted by the Development Agenda for Western Nigeria (DAWN) Commission, which assessed the adoption, efficiency and impact of the NELFUND scheme among students of the premier university.
The study, titled “Adoptability and Efficiency of the Nigerian Education Loan Fund (NELFUND) Scheme in Southwest Nigeria,” surveyed 1,022 University of Ibadan students and examined awareness, applications, disbursement, institutional processes and beneficiaries’ experiences.
Its findings offer a strong indication of the role the student loan scheme is playing in easing the financial burden on students. 83.7 per cent of NELFUND applicants said institutional-fee support had helped them continue their studies either significantly or moderately.
The impact also extended beyond institutional charges. 65.1 per cent of beneficiaries reported that upkeep support significantly or moderately improved their ability to meet daily expenses and remain focused on their education.
NELFUND’s reach among students from lower-income households was another striking finding. The study recorded a 53.7 per cent application rate among students from households earning less than ₦50,000 monthly, compared with 27.3 per cent among those from households earning above ₦1 million.
Awareness of the scheme was also remarkably high, with 99 per cent of respondents indicating that they were aware of NELFUND. Meanwhile, 86.9 per cent agreed or strongly agreed that the scheme could improve access to tertiary education.
Students also gave favourable assessments to key aspects of NELFUND’s digital application system, particularly access to the portal, which received a rating of 4.13 out of 5.
Despite the positive findings, the DAWN Commission noted that challenges remain, particularly around institutional verification and the timing of disbursements.
The commission consequently called for faster and more predictable payments, improved communication with applicants, clearer explanations of repayment obligations and greater access to upkeep support. It also proposed a dedicated NELFUND Liaison Officer at the University of Ibadan to help students navigate the scheme and address administrative bottlenecks.
Interestingly, only 13.2 per cent of students who did not apply blamed lack of awareness, suggesting that the next phase of improving participation should focus more on helping eligible students understand the scheme’s requirements, benefits and repayment arrangements.
For NELFUND, the findings provide a significant measure of impact: students themselves are reporting that financial support from the scheme is helping them stay in school. The study nevertheless underscores the need to strengthen implementation so that more eligible students can benefit without delays.
With nearly eight in every 10 applicants reporting that institutional-fee support helped keep them in school, the DAWN findings reinforce the growing importance of NELFUND in widening access to higher education and reducing financial barriers for Nigerian students.
