NELFUND Introduces Token-Based School Fees Payment System to End Double Payments and Refund Delays

NELFUND Introduces Token-Based School Fees Payment System to End Double Payments and Refund Delays

By OGB Admission Hub News Desk

The Nigerian Education Loan Fund (NELFUND) has commenced the pilot phase of a new token-based school fees payment system designed to prevent students from paying their institutional charges twice and reduce the difficulties associated with obtaining refunds from tertiary institutions.

The initiative was disclosed on Wednesday, 28 October 2026, by NELFUND Managing Director and Chief Executive Officer, Akintunde Sawyerr, during a press briefing.

Under the proposed arrangement, students whose education loans have been approved will be able to authorise the payment of their institutional charges directly to their respective universities, polytechnics and other participating tertiary institutions.

The reform is expected to give beneficiaries greater visibility and control over when their approved

school fees are transferred, without allowing the funds to be withdrawn into personal bank accounts.

Why NELFUND Is Introducing the New Payment System

One of the major challenges confronting beneficiaries of the Federal Government's student loan scheme has been the duplication of school fees payments.

Under the existing arrangement, NELFUND transfers approved institutional charges directly to participating institutions. However, some students have reportedly paid their fees independently because they were unaware that NELFUND had already made payments on their behalf.

This has resulted in cases where institutions receive payments from both NELFUND and the affected students.

Consequently, beneficiaries must request refunds, sometimes experiencing prolonged administrative delays.

In June 2026, NELFUND publicly raised concerns about institutions allegedly delaying or withholding

refunds owed to students who had paid their fees before the fund's disbursements arrived.

The new token-based system is intended to address this problem before it occurs.

How the NELFUND Token Payment System Will Work

According to the explanation provided by NELFUND officials, the proposed process will operate as follows:

Loan approval

The student's application is assessed, and eligible institutional charges are approved.

Payment notification

The student receives notification that the approved school fees are available for payment.

Student authorisation

The beneficiary uses the designated digital application to authorise payment through a token linked to their institution.

Direct institutional payment

The approved funds are transferred to the designated institution rather than the student's personal account.

Payment confirmation

The institution and beneficiary should be able to reconcile the transaction, reducing the risk of duplicate payment.

The system is designed to restrict the destination of the money. A token approved for one institution cannot be redirected to another institution or cashed out by the student.

NELFUND Executive Director Mustapha Iyal clarified that the token is institution-linked and should not

be confused with a conventional personal or mobile money wallet.

Nearly 400,000 Applications Reported

During the briefing, NELFUND officials disclosed that close to 400,000 applications had been received under the ongoing application process.

The figure reflects reported applications and should not be interpreted as the number of students already using the new token payment mechanism.

Although the pilot has commenced, NELFUND has not announced a confirmed date for nationwide

implementation across all participating institutions.

What the New System Means for Nigerian Students

The development could bring several important improvements to the student loan programme.

1. Reduced risk of double payment

Students should have clearer information about when their approved institutional charges are ready for payment, reducing the possibility of paying fees already covered by NELFUND.

2. Fewer refund disputes

By preventing duplicate transactions, the system could reduce the number of students who must pursue refunds through university bursary departments.

3. Greater student involvement

Beneficiaries will participate directly in initiating their approved school fees payments rather than relying entirely on institutions and NELFUND to complete the process without their involvement.

4. Improved accountability

Institution-specific tokens could make it easier to trace payments and confirm that funds are transferred to their intended recipients.

5. Better financial planning

Students and parents may find it easier to plan school fees payments when the status of approved loan funds is communicated promptly.

These are the intended benefits of the reform. Its effectiveness will depend on implementation, reliable notifications and timely reconciliation by participating institutions.

Will Students Receive NELFUND Money in Their Personal Accounts?

No. The token system does not mean that approved school fees will be paid into students' personal bank accounts.

The proposed mechanism concerns institutional charges, which are to be transferred directly to the designated school.

This should not be confused with NELFUND upkeep allowances, which are a separate component of the student loan programme and may be paid to eligible beneficiaries through their registered bank accounts.

The distinction is important because students should not expect to withdraw or transfer tokenised What Happens to Students Already Awaiting School Fees Refunds?

The introduction of the token payment system does not automatically settle outstanding refunds.

Students who have already paid their institutional charges and subsequently discovered that NELFUND also paid the same charges should continue following their institution's established refund procedures.

Affected students are advised to retain their payment receipts, NELFUND application details, disbursement evidence and correspondence with their school's bursary department.

NELFUND has previously maintained that institutions receiving duplicate payments are responsible for

refunding the appropriate amounts to affected students.

Important Advice for NELFUND Applicants

Students currently applying for or benefiting from the scheme should:

Monitor their NELFUND application and payment status regularly.

Confirm with their institution's bursary before paying fees that may already have been covered.

Keep copies of all receipts and official payment notifications.

Avoid unofficial websites or individuals claiming to sell NELFUND tokens.

Wait for official instructions before attempting to use the new payment mechanism.

Applicants should use the official NELFUND student loan portal for their loan applications and account information.

OGB Admission Hub's Analysis

The introduction of a token-based payment mechanism is a potentially important administrative reform in Nigeria's student financing system.

While the NELFUND initiative has expanded access to education funding, delayed payment notifications, reconciliation problems and unresolved refunds have created difficulties for some beneficiaries.

A system that allows students to authorise institution-specific payments could help address these problems at their source.

However, successful implementation will require effective coordination between NELFUND, tertiary institutions and students, particularly where school fees deadlines are approaching.

The pilot phase will therefore be an important test of whether the new arrangement can deliver more transparent, timely and reliable school fees payments.

Conclusion

NELFUND's token-based school fees payment initiative represents a shift towards greater student involvement in the administration of approved education loans.

If successfully implemented, the system could reduce duplicate payments, minimise refund disputes and strengthen accountability in Nigeria's tertiary education financing process.

For now, students should understand that the initiative is being piloted and has not been confirmed as universally available.

OGB Admission Hub will continue monitoring official developments concerning participating institutions, activation procedures and nationwide implementation.