The Alliance for Economic Research and Ethics Ltd/GTE has called for sustainable, multi-year funding for the Nigerian Education Loan Fund (NELFUND), warning that uncertainty over its financing could undermine efforts to expand access to higher education.

The group made the call following the disbursement of N372.62 billion by NELFUND as of September 29, 2026, urging the Federal Government to strengthen accountability, ensure predictable funding and adopt the fund’s rule-based delivery system across other public programmes.

According to NELFUND’s Student Loan Disbursement Report generated on October 3, 2026, N192.89 billion was paid directly to 319 institutions for fees, while N179.73 billion was disbursed to students as upkeep allowances.

The report also recorded 1,659,853 processed applications since the loan portal opened in May 2024. However, the group cautioned that processed applications should not be confused with approvals, unique beneficiaries or students who have received funding.

In a policy commentary titled “No Godfather, Just a Future: Why NELFUND Must Become Nigeria’s Singapore Project,” the group described the programme as a significant step towards reducing the dependence of students on political connections and personal benefactors to finance their education.

It argued that NELFUND should be treated as a permanent public institution rather than a temporary government initiative, with its success measured by the number of eligible students who receive support without having to rely on influential individuals.

The group said the programme had demonstrated how public policy could be delivered through defined eligibility criteria, verified identities, institutional confirmation and traceable payments.

It added that the system could serve as a model for other government interventions, including agricultural subsidies, healthcare support, housing and enterprise financing.

“This does not mean that a database is automatically incorruptible. It is not. A corrupt system can digitise its corruption. The safeguard is digital delivery joined to public records, independent audit, effective complaints handling and consequences for manipulation. Government must move from “come and collect” to “verify and receive”; from discretionary lists to rule-based entitlements; and from anonymous cash handling to auditable delivery.

“NELFUND should now deepen that example. It should publish regular, disaggregated information that distinguishes applications received, applications processed, approvals, unique beneficiaries, institutional payments, upkeep payments, pending cases, failed payments, geography and completion outcomes. Its audited accounts should be complemented by plain-language performance reports. The test of success is not the number of photographs taken with beneficiaries.

“It is the number of qualified Nigerians who receive support without having to meet a gatekeeper,” the group warned, stressing that digital delivery must be supported by public records, independent audits, effective complaints mechanisms and consequences for manipulation.

The group urged NELFUND to publish regular, detailed performance reports showing applications received and processed, approvals, unique beneficiaries, institutional and upkeep payments, pending cases, failed transactions, geographical distribution and completion outcomes.

It also called for the publication of audited accounts alongside accessible performance reports to strengthen public confidence in the scheme.

On funding, the group said the legal framework had changed following the commencement of the Nigeria Tax Act 2025 on January 1, 2026.

According to the commentary, the new tax law removed the former provision under the 2024 Student Loans Act that allocated one per cent of specified taxes, levies and duties collected by the former Federal Inland Revenue Service and accruing to the Federal Government.

The group explained that the new framework provides for a four per cent Development Levy on the assessable profits of liable companies, excluding small companies and non-resident companies, with 15 per cent of the levy’s revenue allocated to the Nigerian Education Loan component.

It stressed that the allocation represented 15 per cent of Development Levy receipts, rather than 15 per cent of all federal taxes or four per cent of corporate profits.

The group said the government should publish the collection, transfer and disbursement records to establish how much of the allocated revenue had actually reached NELFUND.

“The response is not to weaken NELFUND. It is to settle its financing on a transparent, multi-year footing, with clear public reporting and a funding floor that can withstand both fiscal cycles and political changes,” it said.

The commentary also cited Ghana’s GETFund as an example of a dedicated education financing mechanism, clarifying that the fund is supported by a separate 2.5 per cent GETFund Levy on taxable supplies and imports, rather than a direct allocation of 2.5 per cent of existing value-added tax revenue.

It said Nigeria could consider allocating a defined share of existing VAT receipts to NELFUND or introducing a separate education levy, provided either option was backed by clear legislation, transparent collection arrangements and safeguards against diversion.

The group further argued that proceeds recovered from corruption could supplement education financing, but only where the assets had been finally forfeited and the funds were lawfully available for transfer.

It cautioned against using dormant bank balances and unclaimed dividends as though they were ownerless funds, noting that the rights of their owners must be protected.

Beyond government funding, the group encouraged voluntary contributions from businesses, alumni associations, foundations and Nigerians in the diaspora to support priority areas such as technical education, healthcare, engineering, agriculture and digital skills.

However, it warned that private contributions should not give donors the power to select beneficiaries on political, ethnic, religious or commercial grounds.

The group also linked the long-term sustainability of student loans to improvements in teaching quality, technical training, internships and employment opportunities, arguing that graduates must be able to earn incomes before meaningful loan repayments can occur.

Drawing lessons from Singapore, it said Nigeria needed to connect education, technical training, labour-market demand and economic planning over the long term rather than allow election cycles to determine policy priorities.

It urged the Federal Government to protect NELFUND through predictable funding, transparent reporting and regular audits, while extending the programme’s rule-based approach to other social and economic interventions.

The group said the ultimate objective should be to ensure that poverty, political patronage or the absence of influential connections did not determine who could access higher education.

“NELFUND is not perfect, and it is not yet complete. But it has already shown the direction of travel. It has shown that government can build a system in which a verified student, rather than a powerful intermediary, stands at the centre of public policy.

” Nigeria should protect that covenant. Fund NELFUND lawfully and predictably. Publish the evidence. Audit the system. Correct the failures. Replicate the method across social programmes. And never allow poverty, patronage or a missing godfather to decide in advance who may attempt greatness,”