NANS Commends NELFUND Over New Token Payment System

National Association of Nigerian Students (NANS) has applauded the Nigerian Education Loan Fund (NELFUND) for introducing a token payment system for institutional fees, describing it as a major step towards improving transparency, accountability and efficiency in student loan disbursements.

NANS Public Relations Officer, David Obidah, who spoke in an interview with The Guardian, said the innovation could address persistent challenges associated with tuition payments, including duplicate payments and delays in confirming fees already paid by the Fund.

He said the system had the potential to strengthen financial accountability and protect students from administrative lapses that sometimes prevent them from registering for courses, sitting examinations and accessing other essential academic services despite their tuition fees having been covered by NELFUND.

“We commend the Nigerian Education Loan Fund (NELFUND) for introducing its Token Payment System. It is a commendable and forward-looking innovation aimed at strengthening transparency, accountability and efficiency in student loan disbursements,” Obidah said.

He noted that one of the major benefits of the system was its potential to prevent duplicate payments, improve transaction tracking and ensure proper accountability for funds disbursed to cover students’ tuition fees.

According to him, delays in reconciling and confirming tuition payments by some tertiary institutions have created difficulties for beneficiaries, even after the agency has released the required funds.

“Such administrative lapses can place students in difficult situations, with some encountering obstacles in registering for courses, accessing examinations and completing other essential academic activities despite having their tuition fees covered by the Fund,” he said.

Obidah said effective implementation of the initiative would help minimise discrepancies between NELFUND’s disbursement records and institutional payment records, while making it easier to identify and resolve errors, delays and unexplained irregularities.

He added that the system could provide students with clearer evidence of their tuition payments, protecting them from administrative failures beyond their control.

“Regarding the ease of payment for students, NANS believes the system has the potential to simplify the process considerably, provided it is supported by effective implementation and full cooperation from tertiary institutions,” he said.

However, he stressed that the success of the initiative would depend on its practical impact on students, urging the Fund to ensure that the system remained accessible, reliable and responsive to beneficiaries’ needs.

He also called on tertiary institutions to promptly reconcile payments, update student portals and resolve discrepancies without unnecessary delays.

He commended NELFUND’s Managing Director and Chief Executive Officer, Akintunde Sawyerr and the management team for introducing the innovation, expressing confidence that its effective implementation would strengthen financial accountability and public confidence in the student loan scheme.

He urged the Fund to sustain its commitment to innovations that prioritise students’ welfare, safeguard financial integrity and guarantee uninterrupted access to education.

Addressing a press conference on Wednesday in Abuja, Sawyerr had announced that the agency was introducing a new student loan application and payment system to address persistent complaints over institutional fee refunds, delayed institutional notifications and students.

Under the proposed system, known as NELFUND 2.0 initiative, students would use a mobile application to authorise payments directly from their approved loan funds to their institutions, instead of receiving the money in their personal bank accounts.“The system, the token, not only can they not transfer it to their personal account, they can’t transfer it to any other school,” Sawyerr explained.

According to him, the initiative is designed to address cases in which students paid their school fees without knowing that NELFUND had already transferred the money to their institutions.