NELFUND Tests Tokenised Payment System to Prevent Double School Fee Payments
The Nigerian Education Loan Fund (NELFUND) has begun piloting a tokenised payment system aimed at preventing students from paying their school fees twice and reducing complications associated with refunds.
The initiative comes as the student loan scheme records nearly 400,000 applications under the ongoing process.
According to The Punch, NELFUND Managing Director, Akintunde Sawyerr, disclosed this on Wednesday during a press briefing, explaining that the proposed system would enable students to make payments directly to their respective institutions using tokens linked to their schools.
Under the arrangement, beneficiaries would use a mobile application to authorise the transfer of approved loan funds directly to their institutions, rather than having the money for institutional fees paid into their personal bank accounts.
The system is expected to streamline school fee payments, minimise cases of duplicate payments and address refund-related challenges that may arise when loan funds pass through students’ personal accounts.
If fully implemented, the new payment mechanism could strengthen transparency and accountability in the administration of student loans while making the process more seamless for beneficiaries and participating institutions.
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