The Nigerian Education Loan Fund (NELFUND) has come under renewed public scrutiny following a dispute over the amount paid to student-loan beneficiaries and what the government’s tertiary education financing scheme actually covers.
The controversy was triggered by comments from former Kogi West Senator and African Democratic Congress (ADC) chieftain, Dino Melaye, who accused NELFUND of corruption and claimed that students receive only ₦20,000 under the scheme. However, available records show that the ₦20,000 is the approved upkeep allowance, while approved institutional fees are handled separately by NELFUND.
Key Highlights
- NELFUND’s approved upkeep allowance is ₦20,000 per month.
- The ₦20,000 is separate from approved tuition and institutional charges.
- NELFUND has disbursed ₦355.87 billion in student loans as of September 3, 2026.
- About ₦192.89 billion was paid to 319 institutions as institutional fees.
- Another ₦162.98 billion was disbursed to students as upkeep allowances.
- The fund had processed 1,659,853 applications as of September 3, 2026.
Melaye Questions NELFUND Payments
Melaye criticised the implementation of the NELFUND student loan scheme in remarks reported yesterday, describing the fund as a “haven of corruption” and questioning why the government presents the programme as one that pays students’ school fees if beneficiaries receive only ₦20,000.
He also questioned which government institution charges ₦20,000 as annual school fees.
The remarks drew a strong response from Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy. Onanuga rejected Melaye’s claim and described it as false in a response on X.
The National Association of Nigerian Students (NANS) also criticised the former senator, arguing that his description of the scheme did not accurately reflect how NELFUND operates.
What Does the ₦20,000 NELFUND Payment Cover?
The central issue in the controversy is the meaning of the ₦20,000 figure.
A fact-check published by The Guardian on October 1, 2026, found that the claim that NELFUND gives students only ₦20,000 for school fees is misleading.
The ₦20,000 is the approved upkeep allowance for eligible beneficiaries. It is intended to provide financial support for living expenses and is separate from institutional charges covered by the student loan scheme.
NELFUND’s own student-loan platform explains that, after verification, payments for institutional charges are made to the beneficiary’s institution, while the upkeep component is paid into the student’s bank account.
NELFUND also clarified in March 2026 that the approved upkeep allowance remained ₦20,000 per month, following reports that it had been increased to ₦25,000.
This means the ₦20,000 figure cannot be treated as the total value of the NELFUND student loan or as the annual amount available for tuition.
NELFUND Has Disbursed ₦355.87 Billion
The scale of the programme provides further context to the dispute.
According to NELFUND’s latest disbursement figures reported as of September 3, 2026, the fund had processed 1,659,853 applications and disbursed ₦355.87 billion since the student loan portal opened in May 2024.
Of the total, ₦192.89 billion was paid to 319 beneficiary institutions for institutional fees, while ₦162.98 billion was disbursed to students as upkeep allowances.
The figures show that institutional payments account for about 54.2 per cent of the total disbursed, while upkeep payments account for approximately 45.8 per cent.
The totals are tied to specific reporting dates and can change as NELFUND processes additional applications and makes further payments.
How the NELFUND Student Loan Works
The student loan programme was established under the Students Loans (Access to Higher Education) Act, 2024.
The scheme provides financing for approved institutional charges and upkeep support for eligible students. NELFUND’s official terms also state that the loan amount is based on the institutional fees and/or upkeep amounts verified and recorded on the student’s account.
The loans are interest-free. Under NELFUND’s published terms, repayment is linked to employment and income. The fund’s terms provide for a 10 per cent deduction from monthly salary for repayment once the applicable repayment conditions are met.
Read also:
- NELFUND Student Loan Disbursement Rises To N322bn As EFCC Recoveries Boost Funding
- NELFUND Dismisses Claim Tinubu Has Approved Life Jail For Loan Defaulters
- Your Children May Be Receiving NELFUND Loans Without Your Knowledge, Oyedele Says
Delayed Upkeep Payments Remain a Concern
While the dispute over the ₦20,000 figure has dominated public discussion, beneficiaries have also raised concerns about delays in receiving upkeep payments.
Reports earlier in 2026 documented cases involving unpaid or delayed allowances. NELFUND previously attributed some failed transactions to issues including network downtime, unvalidated bank details and other payment problems.
The fund’s rapid expansion has also increased the administrative demands involved in processing applications, verifying beneficiaries and making payments to students and institutions.
These operational concerns are separate from the factual question of what the ₦20,000 represents.
The Main Issue Behind the NELFUND Debate
The current controversy combines two different questions.
The first concerns the political description of the student loan programme and whether the government has accurately communicated what NELFUND pays.
The second concerns the practical experience of beneficiaries, including the adequacy and timing of upkeep payments, communication from the fund and the administration of a scheme that has already processed more than 1.65 million applications.
On the specific claim at the centre of the Melaye controversy, available evidence shows that ₦20,000 is the approved upkeep allowance and not the annual school-fee payment under NELFUND. Approved institutional fees are treated separately and paid to beneficiary institutions.
The wider debate over whether the allowance is sufficient and how efficiently the scheme is being administered remains a separate policy question.
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