The Nigerian Education Loan Fund (NELFUND), officially launched on 24 May 2024 by President Bola Ahmed Tinubu, represents the most ambitious and far-reaching student financing scheme ever implemented in Nigeria’s history. In less than 18 months of full operation, the programme has transformed from a policy promise into a critical national lifeline, recording over 1.8 million total applications and disbursing more than N116 billion in interest-free loans by the end of October 2025. October 2025 alone saw an unprecedented 451,535 successful applications – the highest single-month figure since inception.
This explosive growth did not happen in a vacuum. It is a direct response to one of the most severe cost-of-living crises in decades: headline inflation peaking above 34 % in mid-2024, the complete removal of petrol subsidies, naira devaluation that doubled the price of virtually everything, and sharp increases in tertiary institution charges (some federal universities raised fees by 200–400 % between 2023 and 2025). For millions of Nigerian households, sending a child to university had become mathematically impossible without external support. NELFUND stepped into that gap and, in doing so, has prevented what experts warned could have been the largest mass dropout in Nigerian higher education history.
Background and Legal Foundation
The journey to NELFUND was not straightforward. An earlier Student Loans Act signed in June 2023 by former President Muhammadu Buhari was repealed within months because of design flaws: restrictive eligibility, inadequate funding, no clear repayment mechanism, and heavy reliance on guarantors that many poor families could not provide.
On 3 April 2024, President Tinubu signed the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024, creating NELFUND as an independent body under the Federal Ministry of Education. Key improvements included:
- 100 % interest-free loans
- No requirement for collateral or civil-service guarantors
- Coverage of both tuition and monthly upkeep (living allowances)
- Two-year post-NYSC grace period before repayment begins
- Income-contingent repayment capped at 10 % of monthly income
- Direct payment of tuition to institutions and upkeep to students’ accounts
Top 10 Institutions with Highest NELFUND Applications (May 2024 – October 2025)
1. University of Maiduguri (Borno) – 85,050 applications
Established in 1975, the University of Maiduguri is one of the largest federal universities in northern Nigeria, with over 83,980 students across 37 faculties and 103 departments. Despite operating in a region affected by years of insurgency, the institution has shown remarkable resilience. The 85,050 applications represent one of the highest adoption rates nationwide, with many students coming from displaced families or low-income backgrounds in the North-East.
2. Bayero University, Kano (Kano) – 54,419 applications
Founded in 1977, Bayero University Kano has grown into a leading academic centre in northern Nigeria, serving 38,829 students across 97 departments. With 26,595 students approved for monthly upkeep allowances, BUK recorded one of the highest upkeep disbursements in the country. The university ranks 3rd in Nigeria in the Times Higher Education 2026 World University Rankings.
3. Federal University, Dutsin-Ma (Katsina) – 50,737 applications
Established in 2011 as part of the federal government’s push to expand access in the North-West, FUDMA serves 29,447 students, including 26,819 undergraduates. More than 25,000 students have been approved for upkeep support, reflecting acute financial needs in a region affected by insecurity and rural poverty.
4. Ahmadu Bello University, Zaria (Kaduna) – 46,663 applications
One of Nigeria’s oldest and most prestigious universities, founded in 1962, ABU Zaria remains a powerhouse with 18 faculties and over 35,000 students. It recorded 23,004 upkeep approvals and ranks 6th nationally in the Times Higher Education 2026 rankings.
5. University of Ilorin (Kwara) – 44,735 applications
Known for its stable academic calendar and large student population exceeding 50,000, UNILORIN operates 16 faculties and over 100 departments. It received 44,735 applications, with 21,506 students approved for upkeep support.
6. University of Jos (Plateau) – 35,913 applications
Established in 1975, UNIJOS serves around 40,000 students across 12 faculties. Its teaching hospital (JUTH) strengthens medical training. The university recorded 17,606 upkeep requests, reflecting the financial pressures faced by students in the Middle Belt region.
7. Usmanu Danfodiyo University, Sokoto – 35,714 applications
Founded in 1975, UDUS serves northwest Nigeria with 17 faculties and a strong focus on underserved communities. It recorded 17,603 upkeep approvals, highlighting the programme’s reach in remote areas.
8. Federal University of Kashere (Gombe) – 34,208 applications
Established in 2010 to boost higher education in the North-East, FUKashere has seen rapid growth. Despite a smaller student population of under 5,000, it recorded over 34,000 applications, showing near-total reliance on the loan scheme.
9. Taraba State University, Jalingo (Taraba) – 32,030 applications
Founded in 2008, Taraba State University has grown quickly despite starting with just 582 students. It recorded 15,712 upkeep applications, demonstrating strong demand even in a relatively young state-owned institution.
10. University of Uyo (Akwa Ibom) – 31,826 applications
Established in 1991, UNIUYO is the only southern institution in the top ten. With five campuses and over 23,000 students, it recorded 15,605 upkeep approvals. Its teaching hospital (UUTH) enhances training in health sciences.
READ ALSO: How to Apply for NELFUND 2024/2025 Student Loan
FAQs
Who is eligible for NELFUND loans?
Nigerian citizens enrolled full-time in federal or state universities, polytechnics, colleges of education, or approved vocational institutions. Applicants must have a valid JAMB registration number, NIN, and BVN. Part-time students and those with prior loan defaults are not eligible.
How do I apply?
Visit the official NELFUND portal, register with your email and phone number, complete the eligibility check, enter your personal and academic details, select tuition and/or upkeep support, and submit. The entire process takes 15 to 30 minutes.
What does the loan cover?
Tuition fees (paid directly to the institution) and monthly upkeep allowances (paid into the student’s bank account). The upkeep amount varies but is typically up to N20,000 per month depending on the institution and location.
Is the loan interest-free?
Yes, completely interest-free for the duration of study and the two-year grace period after NYSC.
When do I start repaying?
Repayment begins two years after completing National Youth Service Corps (NYSC). Deductions are automatic at 10 percent of monthly salary through the employer or via Global Standing Instruction (GSI) for self-employed graduates.
What happens if I don’t get a job after graduation?
Repayment is income-contingent. If your monthly income is below a certain threshold, deductions are paused. Hardship waivers and debt forgiveness after long-term low income are also possible.
Can private university students apply?
Currently, the programme covers only public tertiary institutions. Expansion to private and vocational institutions is planned for future phases.
My application was rejected. What should I do?
Common reasons include incomplete data from your school, mismatched details, or ineligibility. Contact NELFUND support or wait for the next application window after correcting the issues.
How much has been disbursed so far?
As of October 2025, over N116 billion has been disbursed nationwide, with more than 400,000 students benefiting from tuition payments and upkeep allowances.