GOOD NEWS: FG Releases New NELFUND Loan Guidelines 2025 – Over 2 Million Students to Benefit

Nexus August 30, 2025 0

The Federal Government has rolled out fresh guidelines for the Nigerian Education Loan Fund (NELFUND) to make the student loan system more transparent, fair, and efficient. This major reform is expected to benefit over 2 million students across universities, polytechnics, and colleges of education in 2025.

Officials say the new measures will restore confidence among students and their parents, many of whom had raised concerns about delays and mismanagement in the previous system.

Why the Guidelines Were Introduced

According to the Ministry of Education, the updated framework was developed after wide consultations with vice-chancellors, rectors, provosts, and financial experts. A committee review earlier found that while funds were not mismanaged, the system lacked proper harmonisation.

The new structure now provides a single policy for all schools, ensuring every student is treated fairly and gets loan support without unnecessary hurdles. It also comes with a real-time monitoring system to trace every disbursement and close loopholes for abuse.

Minister of Education Explains

Speaking on the development, the Minister of Education, Dr. Maruf Alausa, said the reforms will solve long-standing challenges. He emphasized that no student should be denied access to education because of late loan disbursements.

Some of the key provisions include:

• Uniform timelines for loan application, verification, and disbursement.

• A unified fee structure across institutions to reduce hidden charges.

• A clear refund policy for students who withdraw or fail to meet requirements.

• Direct collaboration with the CBN for real-time monitoring of the Treasury Single Account (TSA).

These steps are expected to build trust and help students plan their education with confidence.

Students to Enjoy Faster Loan Payments

For students nationwide, the biggest relief is the introduction of strict disbursement timelines. In the past, many students waited months before getting approved loans, delaying registration and exams.

The new framework eliminates these delays and ensures schools follow a clear schedule for processing applications.

In addition, students will now receive loan updates through a standard communication channel, reducing confusion and giving them clarity on repayment rules, refunds, and other processes.

Renewed Hope Agenda

During the unveiling, Dr. Alausa praised President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises student welfare. He said the reform was not only financial but also a social investment in Nigeria’s future.

The Minister of State for Education, Professor Suwaiba Said Ahmad, also noted that the guidelines ensure inclusiveness. Students from both rural and urban areas will now have equal access without discrimination.

Both ministers described the reform as a turning point in reducing the financial struggles of Nigerian households.

Strict Monitoring and Feedback

To make sure the reforms achieve results, the Ministry of Education announced plans for strict monitoring and evaluation of schools. Institutions that fail to comply with the timelines and refund policies will be held accountable.

A student feedback system will also be introduced, allowing students to report issues directly to the Ministry. Regular reports will be published to keep Nigerians updated on the performance of the scheme.

By making the process open and transparent, the FG hopes to prove that the NELFUND program works for everyone.

Conclusion

The new NELFUND guidelines mark a bold step by the Federal Government to ease the burden of tuition and upkeep on Nigerian students. With over 2 million beneficiaries projected in 2025, the reforms aim to ensure that no student is left behind due to financial barriers.

For many families, this reform brings a renewed sense of hope that education in Nigeria is becoming more accessible, reliable, and fair.