ASSESSING THE ROLE OF THE NIGERIAN EDUCATION LOAN FUND (NELFUND) IN PROMOTING FINANCIAL INCLUSION AMONG UNIVERSITY STUDENTS IN NIGERIA

Abstract

The cost of living, particularly tuition fees at Nigerian public universities, has risen disproportionately relative to wages in recent years, increasing the risk of school dropouts. NELFUND was introduced to break financial barriers in higher education and reduce dropout rates. This pilot study aims to examine the structure and impact of NELFUND on students. Using an online survey, six universities, with a representative university from each geopolitical zone were surveyed to collect data on students’ socio-demographic characteristics, the influence of the loan on academic performance, its role in promoting financial inclusion, and beneficiaries’ awareness and understanding of the loan repayment plan. The variables were analysed using descriptive statistics. The results of the study revealed that the loan has positively improved respondents’ academic focus and reduced financial stress. It was discovered that disbursements take too long, and there is a lack of formal communication regarding repayment terms. Despite these issues, over 90% of respondents expressed willingness to recommend the loan to peers, and more than 70% considered the repayment plan fair and manageable. Therefore, the study recommends that the loan be disbursed early to maximise its impact and achieve the loan's purposes.

Keywords: NELFUND, Higher Education Financing, Inclusive Education in Nigeria