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NELFUND Introduces Digital Token for Tuition Payments
The Nigerian Education Loan Fund (NELFUND) has announced plans to replace its current method of paying tuition fees directly to tertiary institutions with a digital token-based system.
Managing Director Akintunde Sawyerr disclosed the upgrade during an interview, explaining that the new system will give students more control over when tuition payments are made while ensuring funds are used strictly for education.
“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 push a button that makes the payment,” Sawyerr said.
He clarified that once implemented, NELFUND will no longer transfer tuition fees directly to schools. Instead, students will make payments through tokens, preventing cases of double payments that occurred during the first year of the scheme.
Sawyerr stressed that tuition loans would not be paid directly into students’ bank accounts to avoid diversion of funds.
“We chose not to pay students directly because that would take us into an area where they could decide not to use the money for school,” he explained.
The initiative follows complaints from students who had already paid fees before NELFUND disbursements reached their institutions, leading to duplication. Aligning loan disbursements with academic calendars is expected to reduce such issues.
NELFUND noted that while tuition will be tokenized, students will continue to receive upkeep stipends directly, ensuring support for living expenses.
Since its launch in 2024, NELFUND has disbursed ₦206.29 billion in loans to over 1.16 million beneficiaries, with more than 1.7 million applications received, underscoring the growing demand for Nigeria’s student loan programme.
