NELFUND to curb double‑payment of school fees with new token system

NELFUND launches tokenised payment pilot

On 28 October 2026, the Nigerian Education Loan Fund (NELFUND) revealed a new payment system designed to eliminate duplicate tuition payments and refund problems. The pilot, announced by Managing Director Akintunde Sawyerr during a press briefing, will let students use a mobile application to authorise fee payments directly to their institutions through tokens linked to the schools. The system is intended to replace the current practice of disbursing loan funds into students’ personal bank accounts.

The initiative comes after the fund received almost 400,000 applications under the loan scheme and identified cases where students had taken loans while their parents continued to pay school fees. Sawyerr said the new arrangement would also give parents a mechanism to confirm that their children’s tuition had been paid, without revealing the exact amount.

Background

NELFUND was established by the Federal Government to reduce financial barriers to tertiary education. The programme provides eligible Nigerian students with government‑backed loans that can be used to pay tuition and other related costs. However, reports of “double‑dipping” – students receiving loan support while still relying on parents for fee payments – prompted the fund to review its procedures.

In a press briefing, Sawyerr explained that the fund had identified several instances where students had accessed loan support but continued to place the burden of tuition on their parents. He described the practice as unacceptable and announced the launch of the tokenised payment system as part of a broader effort to strengthen transparency and accountability in the loan scheme.

Why it matters

The tokenised payment pilot is aimed at protecting both students and parents. For students, the new system reduces the risk of paying tuition twice, which has previously led to refund complications and financial strain. For parents, the ability to verify that fees have been paid through NELFUND provides clarity and reduces the likelihood of unnecessary out‑of‑pocket expenses.

The move also addresses concerns raised by parents who felt they were still financially responsible for their children’s education despite the availability of government‑backed loans. By ensuring that payments are made directly to institutions, NELFUND seeks to prevent situations where students unknowingly pay tuition after the fund has already remitted the amount.

What happens next

NELFUND will begin piloting the tokenised payment system with the 400,000 applicants already in the pipeline. The fund has not yet announced a nationwide rollout date, but the pilot is expected to run in selected institutions before a broader implementation. Parents and students will be informed through the NELFUND mobile application and other communication channels about how to use the new system and how to verify payments.

The initiative follows the federal government’s ongoing efforts to expand access to tertiary education through the student loan programme. By tightening accountability and improving transparency, NELFUND aims to ensure that eligible students can access higher education without immediate financial constraints while preventing misuse of the loan scheme.