Koko Maxwella 
ABUJA, Nigeria – The Nigeria Education Loan Fund (NELFUND) confirms it will begin clearing ₦927.98 million in unpaid loan disbursements owed to more than 11,000 students nationwide, following weeks of delays caused by technical and operational issues, officials say.
In an exclusive interview monitored on Arise News on Wednesday, NELFUND’s Executive Director of Operations, Mustafa Iyal, says the backlog stems largely from application errors, including incorrect or duplicate bank account details submitted by beneficiaries.
According to Iyal, affected tertiary institutions have already been contacted and instructed to invite students to update their banking information. He reveals that close to 50 per cent of the outstanding cases have now been resolved.
“By next week, we will begin paying out all the backlogs. This is a loan, and it is important that students receive exactly what they applied for,” Iyal says.
Since the launch of the student loan scheme, NELFUND has disbursed ₦161.97 billion, processed more than 1.36 million applications and supported 864,798 students across Nigeria. To clear the arrears, the fund has adopted a one-time reconciliation process that includes direct engagement with beneficiaries, bank account validation and immediate payment once verification is completed.
Iyal discloses that the scheme is set for significant expansion in the 2026–2027 academic session, with more than 200 additional institutions seeking to onboard. He explains that upkeep allowances are only verified after schools confirm the payment of tuition fees, ensuring accountability in disbursements.
He adds that the application process remains fully digital and integrated with institutional and JAMB databases, removing the need for physical documentation.
On sustainability, Iyal reveals that about 50,000 graduates from the 2022–2023 cohort have already begun early repayments, reinforcing confidence in the scheme’s long-term viability.
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Hussaini Ibrahim 
Korede Abdullah 
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