NELFUND and other ways to fund your studies in Nigeria
In Nigeria, student loans mainly come through NELFUND, a public fund created by a 2024 law that pays interest-free tuition fees for students at public institutions and a monthly allowance, repayable two years after NYSC national service.
The 2024 Access to Higher Education Act
The Student Loans (Access to Higher Education) Act of 2024 replaced a first 2023 law considered too restrictive. It created the Nigerian Education Loan Fund, tasked with funding students at public universities, polytechnics and colleges of education.
What the NELFUND loan covers
The fund pays tuition fees directly to the institution and can give the student an upkeep allowance set at 20,000 NGN a month. This amount, seen as too low in Lagos or Abuja, is under discussion for a possible review.
An interest-free loan
No interest is charged on the principal borrowed, which sets NELFUND apart from any Nigerian bank loan. Students repay only the sums they actually received, making the scheme far more advantageous than a personal loan.
Repayment after NYSC
Repayment begins two years after the end of the National Youth Service Corps. The employer then deducts 10% of the beneficiary's salary and pays it over to the fund, which ties the repayment burden to the income actually earned.
Verification by the institution on the SVS
Each application must be confirmed by the university or polytechnic on the Student Verification System. Institutions that are slow to update their lists hold their students back, so it is important to check your status with the relevant office.
An application calendar to follow
For the 2025-2026 year, the portal reopened in October and ran until January, and unverified 2024-2025 applications were cancelled. Students must therefore watch official announcements and apply as soon as the portal opens.
Private universities and study abroad
Students at private universities such as Covenant or Babcock, and those leaving for the United Kingdom or Canada, are not covered by the public scheme. They rely on family savings, scholarships or foreign currency bank loans instead.
Federal and state scholarships
The Federal Scholarship Board, the Petroleum Technology Development Fund and state scholarship boards fund high-achieving students, sometimes for master's degrees abroad. These awards do not have to be repaid but are highly selective.
Before university: family school credit
For primary and secondary school, families use other solutions, from salary advances to back-to-school loans. These options, tied to the three terms of the school year, are described on the school fees loans in Nigeria page.
Unemployed graduates and repayment
The 10% deduction only starts with salaried employment. A young graduate still looking for work will find ideas on the loans for the unemployed in Nigeria page, while the NELFUND debt accrues no interest.
Fake applications and illegal fees
Fraudsters offer to speed up a NELFUND application for a fee, on WhatsApp or on campus. Applying is free and done online, using the student's BVN, NIN and JAMB registration number, with no agent involved.
Comparing with student loans in Senegal
In Senegal, the state supports students mainly through grants and allowances, and bank loans are rarer. The student loan in Senegal page shows how far this differs from the Nigerian model of an interest-free public loan.
Applying for a NELFUND loan
- Check that your public institution is covered and has sent in its list of enrolled students.
- Gather your BVN, NIN, JAMB number and matriculation number before the portal opens.
- Create your account on the fund's official portal and complete the application without any intermediary.
- Follow the verification of your file by the institution on the Student Verification System.
- Confirm that fees have been paid to the institution and the allowance credited to your account.
The real cost of a NELFUND loan
| Element | Rule | Status |
|---|---|---|
| Interest | No interest on the principal | Set by the 2024 law |
| Upkeep allowance | 20,000 NGN a month | Announced amount, indicative |
| Application fee | Free | Any payment requested is suspect |
| Repayment | 10% of salary deducted by the employer | Two years after NYSC |
Information NELFUND asks for
- BVN number
- NIN number
- JAMB registration number
- Student matriculation number
- Admission letter or proof of enrolment
- Bank details for the allowance
Mistakes that delay a student loan in Nigeria
- Paying a so-called agent to speed up an application when applying to NELFUND is free.
- Entering a name that differs from the one on your BVN or NIN, which blocks automatic verification.
- Waiting until the end of the semester to apply and missing the official window, which is open only a few months a year.
- Ignoring the obligation to repay after NYSC in the belief that the loan is a scholarship.
Lenders to contact
- Jaiz Bank: Nigeria's first non-interest bank, publicly listed, offering Shariah-compliant accounts and financing to individuals and businesses.
- TAJBank: Second non-interest banking institution launched in Nigeria, providing Islamic banking services to both retail and business customers.
- Jaiz Bank: Nigerian Islamic bank offering Sharia-compliant home finance as well as personal financing for household appliances and equipment.
- Federal Mortgage Bank of Nigeria (FMBN): Federal mortgage bank of Nigeria granting National Housing Fund home loans to contributors for buying or building a house.
NELFUND and student loans: your questions
Can students at private universities get NELFUND?
The scheme targets public higher education institutions. Students at private universities must turn to scholarships, support from their institution or family funding, or even a bank loan when the family has income paid into a bank.
Do you need a guarantor for a NELFUND loan?
No, the scheme asks for neither a guarantor nor collateral. Identification relies on the BVN and NIN, and repayment is ensured by deduction from salary once the beneficiary is in employment.
What happens if you become self-employed?
The law also provides for repayment by beneficiaries who are not salaried, based on their income. The practical arrangements are less detailed than for employees, so it is worth following the fund's official communications.
Does NELFUND cover postgraduate studies?
The scheme is aimed first at undergraduates at public institutions. Master's and doctoral students more often turn to scholarships from the PTDF, TETFund for academic staff, or international programmes.