Loan: Students allege inconsistency in payment of upkeep allowance

2026-03-26 - 07:43

By Adesina Wahab The Nigerian Education Loan Fund, NELFUND, popularly called Student Loan Scheme, has made great impact in the funding of tertiary education in the country since it started operations about two years ago. As of March 2026, NELFUND has disbursed over N206 billion in student loans to more than 1.16 million beneficiaries in public tertiary institutions across the country. The disbursed funds cover 270 institutions nationwide, with tuition fees accounting for N128.84 billion of the funds and paid directly to institutions. Also, Student’s Upkeep Allowances totalling N77.45 billion have been paid directly to students. Students get N20,000 as monthly upkeep allowance. The 1.160 million beneficiaries were picked from about 1,751,669 applications. As laudable as the scheme is, the upkeep allowance seems to be an area generating backlash from some quarters. Some see the allowance as too small in today’s Nigeria with the high cost of living, while there are complaints about the regularity of the allowance. Some parents and students have decried the alleged irregularity in the payment of the allowance. A parent, Mr Adebola, whose daughter is a student at Federal University of Technology, Akure, FUTA, Ondo State, urged NELFUND to work harder regarding the disbursement of upkeep allowance. He told Vanguard Learning: “Regarding the payment for tuition, the payment is directly paid into the school’s account, while personal upkeep is paid into a student’s personal account. “So far, while the school fee payment has been consistent after initial hiccups of short payment which we have to make up for without refund, there has been a breach of trust in the payment of the monthly upkeep allowance. She has only been paid that twice, and she is now in 400-level at FUTA. What happened to the other months she ought to have been paid? Another parent, Mrs Odesola, alleged that the same situation is being experienced by her son at the University of Lagos, Akoka, Lagos. “I can say that the initial challenges that trailed the disbursement of tuition fee about a year ago have been overcome, but the snag about the whole programme is the disbursement of monthly upkeep allowance. That has been very inconsistent. We want them to take note of that and improve,” she said. Mrs Odesola added that the fear of parents is that probably some persons somewhere are fiddling with the allowances and that their wards would eventually be made to pay for money they did not collect in the end. “We all know it is a loan and if there is an assurance that proper and adequate record is kept that will show how much a student actually collected, there is no problem. But you never can say in this country, you may be asked to pay for what you did not consume or use,” she stated. We only pay upkeep allowance when schools are in session — NELFUND Responding to inquiries by our correspondent, Mrs Oseyemi Oluwatuyi, the spokesperson for NELFUND, allayed the fear by parents that beneficiaries could be made to repay funds they did not collect. “First, let me explain that the student’s upkeep allowance is paid when the institutions of the beneficiaries are in session. It is not a payment beneficiaries would expect in the 12 months that make the year. To the best of our knowledge, schools go on break. So, when schools are not in session, no payment is made. “Regarding the fear that beneficiaries could be made to pay for allowance they did not collect, that cannot happen. We have the records of schools, the beneficiaries and payments made,” she said. Meanwhile, the Lagos State University, LASU, Ojo, has acknowledged receipt of money paid by NELFUND to take care of their tuition fees for the current session It added that the institution has been credited with funds for its students who applied for the loan for the 2025/2026 academic session and urged the students to take some steps to access the loans. A statement by the university management advised concerned students to note the following: Students who have fully paid their fees for the session will be refunded, and students who have made part payments will receive refunds accordingly, with the loan covering the remaining balance. Students are therefore advised to check their portals or contact the Bursary Office for updates. They are also to contact the school’s NELFUND Desk Officer on the 3rd Floor, Babatunde Raji Fashola Senate Building, LASU Main Campus, Ojo.