NELFUND to Introduce Digital Token System for Tuition Payments

The Nigerian Education Loan Fund (NELFUND) has announced plans to replace its current system of paying tuition fees directly to tertiary institutions with a digital token-based payment platform aimed at improving transparency and eliminating cases of double payment.

Managing Director of NELFUND, Akintunde Sawyerr, disclosed the development during an interview on ARISE News, explaining that the proposed system would give students greater control over the timing of their tuition payments while ensuring the funds are used strictly for educational purposes.

According to Sawyerr, students will receive a digital payment token on their mobile phones, which they can activate at their institution’s bursary to complete tuition payments.

“We’re looking at a tokenized system where the student has the funds effectively as a token on their telephone, and when they go to the bursary, they can effectively push a button that makes the payment,” he said.

He explained that once the upgrade is completed, NELFUND will discontinue direct payments to tertiary institutions, with students instead initiating payments through the secure digital token.

Sawyerr noted that the agency deliberately chose not to transfer tuition loans directly into students’ bank accounts to prevent the diversion of education funds for other purposes.

He said the student loan scheme was established by the Federal Government to ensure that no qualified Nigerian is denied access to tertiary education because of financial challenges.

The proposed payment reform follows complaints from students whose institutions received tuition payments from both the students and NELFUND, resulting in cases of double payment.

According to the NELFUND boss, many of the affected students had paid their fees to meet registration and examination deadlines before the loan applications were processed, largely because the programme commenced in the middle of an academic session.

He added that aligning loan application and disbursement cycles with academic calendars, alongside the new digital token system, is expected to significantly reduce such occurrences in future.

The planned overhaul forms part of broader reforms by NELFUND to strengthen accountability, improve efficiency and enhance the administration of Nigeria’s student loan programme as the number of beneficiaries continues to increase.

According to NELFUND, more than 1.16 million students have benefited from the scheme, with over ₦206.29 billion disbursed for tuition fees and monthly upkeep allowances since the programme was launched in May 2024.