BREAKING: NELFUND introduces token system to stop double payment of school fees

The Nigerian Education Loan Fund (NELFUND) has launched a pilot program for a tokenized payment system aimed at preventing students from paying their school fees twice and eliminating refund complications. Nearly 400,000 applications for the new system have already been received, according to NELFUND Managing Director Akintunde Sawyerr.

Under the proposed system, students will be able to initiate payments from their approved loan funds directly to their schools through tokens linked to their educational institutions. This eliminates the need for students to receive the money in their personal bank accounts. Sawyerr explained that the change addresses situations where students unknowingly pay their fees twice, leading to refund complications.

Sawyerr emphasized that the tokenized system would give students control over the payment initiation process while restricting how the funds can be used. The money would move directly to the designated institution's account, reducing the possibility of students paying fees already covered by NELFUND. The system ensures that students cannot transfer the funds to their personal bank accounts or redirect them to other institutions.

The Executive Director of NELFUND, Mustapha Iyal, added that each token is linked to a specific institution and cannot be used to move money to a personal account or another school. The pilot phase has already begun, with close to 400,000 applications received. The tokenized payment system aims to streamline the payment process, improve coordination among NELFUND, beneficiaries, and educational institutions, and ultimately ease the financial burden of tertiary education for students.