Executive Director, Operations, Nelfund, Mustafa Iyal, has assured that all students owed arrears under the fund’s loan scheme will receive their payments.
In an interview with Arise News, Iyal explained that delays affecting more than 11,000 students, amounting to about N927.98 million, were caused by technical and operational issues, not policy failure, as Nelfund prepares for a major expansion in the 2026–2027 academic session.
“The backlog that we have… majorly comes from the application process. Some students submitted wrong account numbers, some did not take it seriously, and some used duplicate accounts,” Iyal said. “Presently, we have reached out to the institutions and sent them this list. Kindly call your students in, let them come and update their records. Almost 50 percent of records have been updated, and by next week we will start paying out all this backlog because it’s a loan. It’s better we give them what they applied for.”
Since its inception, Nelfund has disbursed N161.97 billion and received over 1.36 million applications, benefiting 864,798 students. To resolve the outstanding payments, Iyal outlined a one-time reconciliation process: “Direct engagement with affected students, a defined grace period for updating or providing alternative bank account details, multi-layer validation involving client support, audit and finance teams, and prompt payment once validation is completed. Every eligible student must receive what is due to them accurately and transparently and without delay.”
Looking ahead, Nelfund expects significant growth, with over 200 institutions submitting applications to join the scheme. Iyal emphasised the importance of institutional verification for upkeep allowances: “You can’t apply for upkeep alone without institutional charges. The only verification we have is confirmation from institutions that you have paid your school fees.”
The application process, he explained, is fully digital and integrated with institutional databases. “The student selects their institution, enters their matriculation number, which we validate with the institution’s database. We also check JAM records to confirm admission. The student then verifies personal details, and all educational data is already connected through our systems. There’s no need for students to submit additional documents,” Iyal said.
On funding and repayment, Nelfund has already started receiving repayments from some graduates. “Operationally, yes, Nelfund has the capacity. Our portals, systems, and processes are up to standard. Regarding repayment, we have graduates already repaying before the expected time. From 2022–2023, about 50,000 graduates have started repayment,” Iyal added.
He also stressed that the fund is fully prepared to handle the growing demand: “When it comes to capacity, we had a five-year plan. Applications have been rising steadily—60% in 2024, and now nearly 70% growth for 2025–2026. The President has provided additional support and funds to ensure we can meet this demand.”
Nelfund’s efforts, Iyal concluded, aim to ensure that the loan programme continues to support students transparently and efficiently, while expanding to include more institutions in the coming academic year.
Boluwatife Enome
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