SNOW TV NEWS DESK

The Nigerian Education Loan Fund (NELFUND) has commenced a pilot of a tokenized payment system designed to prevent students from paying their school fees twice and reduce complications associated with refunds.

The Managing Director and Chief Executive of NELFUND, Akintunde Sawyerr, disclosed this on Wednesday, October 28, 2026, during a press briefing, noting that the fund had received close to 400,000 applications.

Sawyerr explained that the new system would allow students to authorize payments directly to their institutions through tokens linked to their respective schools, instead of receiving institutional loan funds in their personal bank accounts.

According to him, the initiative addresses cases in which students, unaware that NELFUND had already paid their fees, made duplicate payments to meet school deadlines.

He said the system would notify students when their approved fees were ready for payment, enabling them to initiate transactions through their phones.

The NELFUND chief executive stressed that the arrangement would give students control over payment authorization without allowing them to divert the funds to personal accounts or other institutions.

The fund’s Executive Director, Mustapha Iyal, added that each token would be tied to a specific institution and could only be used to direct payments to the designated school.

Although the pilot has commenced, officials did not announce a date for full implementation. They also did not indicate how many of the applications received had been processed under the new arrangement.

NELFUND administers the Federal Government’s student loan scheme established under the Students Loans (Access to Higher Education) Act, 2024, which provides eligible Nigerian students with financial support for tertiary education.

SNOW TV EDITORIAL ANALYSIS

NELFUND’s tokenized payment system is a positive step towards improving accountability and reducing administrative errors in student loan disbursement. By allowing students to authorize payments directly, the initiative could minimize duplicate payments, refund delays, and possible misuse of funds.

However, its success will depend on reliable notifications, efficient payment processing, and proper coordination between the fund and tertiary institutions. NELFUND should also establish clear procedures for resolving failed transactions and disputes.

Ultimately, technology can improve transparency, but effective implementation and timely communication will determine whether the system delivers meaningful relief to students.