The Nigerian Education Loan Fund (NELFUND) has announced plans to replace its current method of paying tuition fees directly to tertiary institutions with a new digital token-based payment system.
The proposed system is designed to improve transparency, eliminate cases of double payments, and give students greater control over the timing of their tuition fee disbursements.
Speaking during an interview on ARISE News on Sunday, NELFUND Managing Director, Akintunde Sawyerr, explained that the digital token would serve as a secure payment authorization rather than cash handed directly to students.
According to him, once a student's loan application is approved, a unique digital token will be generated. The student can then activate the token whenever they are ready to pay their tuition fees, after which the institution will redeem the token through the NELFUND platform.
Sawyerr noted that the new approach will ensure education loan funds are used strictly for tuition payments while preventing errors, fraudulent claims, and duplicate disbursements that have affected the current system.
He added that the digital payment model is expected to make the loan process faster, more efficient, and easier to track, strengthening accountability between students, tertiary institutions, and NELFUND.
The initiative forms part of NELFUND's ongoing efforts to modernize Nigeria's student loan scheme and improve access to higher education through secure and technology-driven financial services.
TwisdicInfo Insight:The introduction of a digital token system could significantly enhance confidence in Nigeria's student loan programme by reducing payment disputes and ensuring that tuition funds reach their intended destination. If successfully implemented, the innovation may set a new standard for transparent education financing across the country's tertiary institutions.
Source: ARISE News Interview with NELFUND Managing Director, Akintunde Sawyerr.