NELFUND Moves To Digital Tuition Tokens To End Double Payments
Nigeria’s student loan scheme is set for a major payment overhaul as the Nigerian Education Loan Fund (NELFUND) plans to introduce a digital token system aimed at curbing double tuition payments and strengthening transparency.
NELFUND Managing Director, Akintunde Sawyerr, said the new system would replace direct tuition payments to tertiary institutions, giving students greater control over when their fees are paid without allowing them to divert the funds.
Under the proposed arrangement, eligible students will receive digital tokens on their phones, which they can activate at their institution’s bursary to complete tuition payments.
Sawyerr explained that the reform was prompted by complaints from students who had already paid their fees before NELFUND disbursed funds to their institutions, resulting in cases of double payment.
He attributed the challenge partly to the student loan programme commencing midway through academic sessions, forcing some students to pay their fees to meet registration and examination deadlines while awaiting loan approval.
According to him, the digital token system, alongside plans to align loan applications and disbursements with institutions’ academic calendars, is expected to reduce payment irregularities and improve efficiency.
While upkeep allowances will continue to be paid directly to beneficiaries, Sawyerr stressed that tuition funds would remain restricted to educational purposes.
The reform forms part of NELFUND’s efforts to strengthen accountability and expand access to tertiary education for Nigerians facing financial constraints.
Follow the Savinews Africa channel on WhatsApp:https://whatsapp.com/channel/0029VawgaEL5vKA9Y5XTFg0n