The Nigerian Education Loan Fund (NELFUND) has begun a pilot of a school‑locked payment token that allows students to authorise fee payments directly to their institution, preventing duplicate payments; the initiative was unveiled by Managing Director Akintunde Sawyerr on Wednesday.
Key details of the pilot include:
- The token is tied to a single school, so funds are transferred straight to the school’s account and cannot be diverted to a personal or another institution’s account.
- NELFUND has recorded almost 400,000 applications for its interest‑free loan scheme.
- Sawyerr illustrated the problem: the fund may pay a school on Monday, a student might re‑pay the same fees on Wednesday, and only discover the earlier payment on Friday, forcing the school to issue a refund.
- "We’re not giving the students money, but we’re giving them power," Sawyerr said during the briefing.
- The token is not a mobile‑money wallet; it merely serves as a payment‑approval mechanism limited to school fees. Upkeep allowances continue to be paid into students’ personal bank accounts as before.
- The loan programme operates under legislation signed by President Bola Tinubu in April 2024, which authorises interest‑free loans for eligible students.
How does the token work?
Students receive a notification on a smartphone app when a fee payment is ready for approval. If they confirm, the specified amount—say ₦200,000—is sent directly to the designated school’s account. If the student does not approve, the funds remain untouched. The token cannot be transferred to any other account, ensuring that the money reaches only the intended educational institution.
What problem does it address?
Previously, delays in communication meant that students were sometimes unaware that NELFUND had already settled their fees, leading them to make a second payment. This not only caused inconvenience but also required schools to process refunds, adding administrative burden.
The pilot is currently limited to a few institutions, and NELFUND has not announced a timetable for a nationwide rollout. The agency hopes the token will streamline fee payments, reduce errors, and give students clearer control over their loan disbursements.