NELFUND TOKENISED PAYMENT SYSTEM PILOT
The Nigerian Education Loan Fund (NELFUND) has commenced the pilot phase of its tokenized payment system, an initiative designed to address double payments, improve transparency, and streamline the disbursement of institutional fees under the Federal Government’s student loan scheme.
The development was announced on Wednesday, 28 October 2026, by NELFUND Managing Director and Chief Executive, Akintunde Sawyerr, during a press briefing. Executive Director Mustapha Iyal also confirmed that the pilot was underway, with nearly 400,000 applications reportedly received in connection with the ongoing process.
Under the new arrangement, students whose institutional loan applications have been approved will receive a digital payment token linked specifically to their institution. Through the designated mobile application, beneficiaries can authorize payment directly to their institution’s account. The token cannot be transferred to a personal bank account, redirected to another institution, or used for unrelated transactions.
Explaining the initiative, Sawyerr emphasized that NELFUND was not handing cash directly to students but giving them control over the timing of payment. The system is intended to prevent situations in which students pay their fees independently without knowing that NELFUND has already processed their institutional payments, resulting in double payments and subsequent refund difficulties.
The tokenized arrangement applies exclusively to institutional charges, including approved school fees. Upkeep allowances, where approved, will continue to be paid directly into beneficiaries’ personal bank accounts under the existing arrangement.
The initiative follows earlier discussions in July 2026 about introducing a more transparent and accountable payment mechanism. The current pilot will allow NELFUND to assess the system’s effectiveness and address operational challenges before any wider rollout. No definite nationwide implementation date was announced in the briefing.
The success of the initiative will depend on effective coordination among NELFUND, students, and tertiary institutions, particularly regarding payment authorization, timely notifications, and the reconciliation of institutional fee records.
The pilot marks a transition towards a student-authorized, institution-linked payment process aimed at reducing double payments, minimizing refund disputes, and ensuring that institutional loan funds remain dedicated to their intended educational purpose.
Official NELFUND Portal: https://portal.nelf.gov.ng/
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