NELFUND Plans Token System to Prevent Double Payment of School Fees

The Nigerian Education Loan Fund (NELFUND) is planning to introduce a digital token-based payment system to prevent students from paying tuition fees twice and reduce disputes over refunds under the Federal Government’s student loan scheme. NELFUND Managing Director Akintunde Sawyerr disclosed the proposed change during an interview with ARISE News, explaining that the new system would allow beneficiaries to authorise tuition payments directly to their institutions using tokens accessible on their mobile phones. Under the proposed arrangement, students would receive their approved tuition funds as digital tokens and activate payment when they visit their institutions’ bursaries. NELFUND would no longer transfer tuition fees directly to schools once the system had been successfully implemented. “We’re looking at a tokenised system where the student has the funds effectively as a token on their telephone and when they go to the bursary, they can effectively push a button that makes the payment,” Sawyerr said. The planned reform follows complaints from students whose institutions received tuition payments from both the students and NELFUND. Sawyerr explained that the problem arose partly because the student loan scheme began in the middle of an academic session. Some students had already paid their fees to meet registration and examination deadlines before NELFUND processed their loan applications and released the money to their schools. The agency has faced criticism over delays in refunding students whose tuition was paid twice. In July, Sawyerr disclosed that NELFUND was investigating about 34 tertiary institutions over allegations that they had failed to return excess payments to affected students. He said some institutions had processed refunds promptly, while others lacked effective procedures for returning the money. The NELFUND chief also acknowledged that the agency did not have the legal authority to compel institutions to issue refunds or prosecute those responsible for wrongdoing. The proposed token system is intended to give students greater control over the timing of tuition payments while ensuring that the money is used for its approved purpose. Sawyerr said the Fund had deliberately avoided paying tuition loans directly into students’ bank accounts because unrestricted access to the funds could create opportunities for diversion. Students’ upkeep allowances, however, are paid separately. The agency is also working to align loan application and disbursement schedules more closely with academic calendars, which could help reduce the timing problems that contributed to duplicate payments. The proposed changes form part of efforts to improve accountability and address operational challenges in Nigeria’s student loan programme. Their effectiveness will depend on the successful implementation of the payment system and institutions’ cooperation in resolving outstanding refund complaints.