The Nigerian Education Loan Fund (NELFUND) has debunked viral claims that it has increased the monthly upkeep allowance for students from ₦20,000 to ₦25,000.
In a statement signed by its Director of Strategic Communication, Mrs. Oseyemi Oluwatuyi, NELFUND dismissed the claim as false, reiterating that the monthly stipend remains ₦20,000 and urged students to rely only on official communication channels.
The viral claim has again exposed a deeper problem within Nigeria’s student support system, one where misinformation spreads faster than facts, and where thousands of students are left navigating uncertainty in the middle of economic hardship.
Beyond the correction lies a more pressing reality: for many beneficiaries, the real question is no longer about an increase, but whether ₦20,000 can still sustain student life in today’s Nigeria.
The Promise: Education Without Financial Barriers
NELFUND was introduced as a flagship intervention to ensure that no Nigerian student drops out due to lack of funds. Built on an interest-free model, the scheme allows students to repay only the amount borrowed without additional charges.
Since its rollout, the fund has disbursed over ₦206 billion to more than 1.6 million students across 265 institutions, positioning it as one of the most ambitious education financing programmes in Nigeria’s history.
At its core, the initiative reflects the broader social investment agenda of the Federal Government of Nigeria targeting access, equity, and human capital development.
Breaking Down the Support: What Students Actually Get
The NELFUND package is structured into two key components: institutional charges, where school fees are paid directly to institutions to ease the burden on students and their families, and an upkeep allowance, which provides a fixed monthly stipend of ₦20,000 paid directly to students to support their daily living expenses. However, in today’s economic climate marked by rising inflation, increasing rent, and soaring food prices, many students say the ₦20,000 stipend is barely enough to meet basic needs, raising serious concerns about its adequacy and long-term sustainability.
Access Barriers: Where the System Breaks Down
While the programme is designed to be inclusive, access is not always seamless. To qualify, applicants must be Nigerian students enrolled in accredited public tertiary institutions, provide a valid NIN, BVN, and JAMB or matriculation number, and have their details uploaded by their institution to the NELFUND verification portal. This last requirement has become a major bottleneck, as many students experience delays or are entirely excluded when their schools fail to upload their information on time, effectively locking them out of the system. For these students, navigating the process often becomes bureaucratic, requiring repeated visits to bursary offices and registries.
Misinformation Crisis: A Digital Threat to Opportunity
False claims like the recent ₦25,000 stipend rumour highlight a growing challenge of misinformation.
Since NELFUND’s launch, misleading posts about application deadlines, eligibility, and benefits have repeatedly surfaced online. In some cases, students have missed legitimate opportunities or fallen victim to fraudulent platforms demanding payment for “processing” or “access.”
NELFUND maintains that applications are strictly free and only processed through its official portal.
“However, despite its structure and intentions, the programme continues to face growing criticism from students who say the reality on the ground tells a different story.”
Student Backlash and Growing Concerns
Concerns over the Nigerian Education Loan Fund have continued to grow, with complaints from students dating back to the programme’s inception, especially over the adequacy of the ₦20,000 upkeep allowance in today’s economy.
The National Association of Nigerian Students has repeatedly maintained that the ₦20,000 monthly stipend is not enough to meet students’ basic needs, given rising inflation, rent, and food costs.
A number of concerns have also been shared by users on X (formerly Twitter), reflecting ongoing frustrations among applicants. Omoniyi J. Anifowose noted that delays in disbursement and poor communication raise serious questions about the programme’s effectiveness and transparency, while also stating that some applicants have not received upkeep payments since the beginning of 2026.
Big Virg | Fanatix described the scheme as poorly organised and disappointing, arguing that it has failed students and should be scrapped, while insisting that the ₦20,000 upkeep is grossly inadequate.
AKINLOYE MAYOWA TIMILEHIN also expressed concern that many students, particularly at institutions such as Ladoke Akintola University of Technology (LAUTECH), are still awaiting disbursement despite applying for the loan.
TheIfeanyi_Williams highlighted the impact of delays on academic activities, noting that rising school fees and rent have worsened the situation, with some students unable to sit for examinations due to unpaid fees tied to delayed NELFUND disbursements.
Another X user questioned the timing of loan payments, pointing to the financial strain on students who are already struggling to meet their obligations.
Adding to these concerns, the Managing Director of NELFUND, Akintunde Sawyerr, acknowledged issues within the system, explaining that in cases where both students and the fund pay school fees, it creates a double payment situation that should result in refunds to students. He noted that in some instances, these refunds have not been received, describing it as a serious concern that needs to be addressed.
Together, these voices point to a programme that, while ambitious in design, continues to face questions around adequacy, efficiency, and implementation.
Repayment Model: Safety Nets and Accountability
Unlike conventional loans, NELFUND offers a structured and relatively flexible repayment plan, where repayment begins two years after completing NYSC, deductions are automatically made once the beneficiary is employed, and unemployed graduates are required to file quarterly affidavits until they secure a job, while loans are fully written off in cases of death or permanent disability. This design is intended to balance accountability with compassion, ensuring that repayment does not become an overwhelming burden during periods of unemployment.
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NELFUND represents a bold shift in Nigeria’s education financing landscape. Yet, its success depends not just on funding, but on executing efficient data systems, institutional cooperation, and public trust.
For many students, the scheme is a lifeline. But for others, gaps in communication, delays, and misinformation continue to undermine its full potential.
As Nigeria pushes forward with education and economic reforms, one question remains critical: Can NELFUND evolve fast enough to meet the real needs of the students it was designed to serve?
There is no increase in the monthly upkeep allowance. It remains ₦20,000 and students are advised to rely only on verified updates from the Nigerian Education Loan Fund.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
