NELFUND Raises Alarm as Soaring Tuition Fees Threaten Sustainability of Nigeria’s Student Loan Scheme

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17/11/25 • 5 Views • 0 Share • Published in News

The Nigerian Education Loan Fund (NELFUND) has issued a serious warning over what it calls an “unprecedented and alarming escalation” in tuition fees across public tertiary institutions—an upward surg..

A confidential risk assessment document obtained by The Guardian reveals that several universities and polytechnics have increased their fees by between 20 percent and a staggering 521 percent, forcing NELFUND to reassess its financial models and operational capacity. The internal report, “Framework to Mitigate the Impact of Increased Institutional Charges on the Fund’s Operations,” shows that the Fund’s loan projections have been severely destabilised by the sudden fee hikes.

Institutions With Sharpest Increases

Among those flagged for significant increments are the University of Ilesha (Osun), Ekiti State University (EKSU), the University of Medical Sciences (UNIMED) in Ondo, Edo State University, Uzairue, Ladoke Akintola University of Technology (LAUTECH), and the David Umahi Federal University of Health Sciences (DUFUHS), Ebonyi State.
The increases are especially steep in high-demand professional courses such as Medicine, Nursing, and Law.

NELFUND’s analysis shows average increments of about 20 percent in Medicine, Nursing, and Law programmes nationwide, with several institutions recording hikes of over 100 percent within a single academic cycle.

Examples of Steep Tuition Adjustments

At Edo State University, charges for Medicine and Surgery rose from around ₦750,000 to over ₦950,000 per session, while Nursing students now pay close to ₦850,000.
UNIMED recorded similar jumps, with medical degrees now costing more than ₦1 million per session—representing a 20–30 percent spike in just one academic year.

LAUTECH’s new tuition structure includes an increase for Law students from ₦250,000 to roughly ₦300,000 per session, alongside other faculty-wide increments ranging from 15–25 percent.

DUFUHS in Ebonyi reported tuition hikes exceeding 40 percent across Medicine and allied health programmes—figures NELFUND warns could push disadvantaged students out of school entirely.

However, the most shocking case appears to be Kogi State Polytechnic, where some fees reportedly skyrocketed by more than 1,000 percent. Students who previously paid under ₦20,000 per semester are now required to pay above ₦200,000 for certain programmes. NELFUND described the move as “extreme and potentially crippling.”

Threat to Loan Sustainability

The Fund warned that these dramatic adjustments have already disrupted its financial forecasts. The loan programme was modelled around earlier tuition benchmarks, and the sudden increases have created significant funding gaps that may hinder timely loan disbursement and repayment recovery.

Risk management officials within NELFUND fear the scheme may face liquidity challenges unless urgent intervention comes from state governments and the Federal Ministry of Education. They also called on the National Universities Commission (NUC) and the National Board for Technical Education (NBTE) to prevent institutions from imposing arbitrary fee hikes.

Growing Concern Among Stakeholders

This development follows earlier revelations by The Guardian that 51 tertiary institutions were implicated in questionable administrative charges related to the student loan initiative. Several institutions were accused of imposing extra fees on students attempting to access the loans, undermining the scheme’s purpose.

The Academic Staff Union of Universities (ASUU), student bodies, and education activists have expressed deep worry, cautioning that unregulated tuition increases will worsen dropout rates—particularly among youths from low-income families.

Policy experts have now urged the Federal Government to establish a national tuition regulation framework to align institutional charges with the objectives of the student loan scheme.

NELFUND Calls for Urgent Action

Despite the mounting concerns, NELFUND reaffirmed its commitment to keeping the loan scheme operational. However, it appealed to tertiary institutions to rethink current fee structures, stressing that the economic realities facing students and parents demand a more compassionate approach.

The report concludes with a stark warning: if the current trend of fee escalation continues unchecked, Nigeria risks excluding thousands of qualified young citizens from tertiary education—an outcome that contradicts the very foundation on which the Education Loan Fund was created.

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