Friday, April 24th 2026

ASUU Faults FG’s Education Loan Scheme, Says NELFUND Treats Education as Business


ASUU Faults FG’s Education Loan Scheme, Says NELFUND Treats Education as Business
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The Academic Staff Union of Universities (ASUU) has criticised the Federal Government’s education funding model through the Nigerian Education Loan Fund (NELFUND), describing it as a policy that commercialises education instead of treating it as a social investment.

ASUU President, Professor Chris Piwuna, stated this on Thursday during an interview on Channels Television’s breakfast programme, The Morning Brief, where he reacted to the rising tuition fees in Nigerian universities.

According to him, the government’s insistence on providing loans instead of grants reflects a “marketplace mentality” that undermines the social purpose of education.

“Our initial position has been that what they call loans should have been grants to universities. But over time, the government has seen education as a profit-making, a marketplace kind of thing,” he said.

Prof. Piwuna noted that ASUU had previously advised the government to review the structure of the loan scheme but its suggestions were ignored.

“They have decided to run it through NELFUND. We have given them advice. They have the right to accept our advice or not. We want it to succeed. We wish them the best,” he added.

Students Afraid of Taking Loans

The ASUU president questioned the effectiveness of the NELFUND scheme, pointing to the low number of student applicants as evidence of poor acceptance.

“We have about a little over 2 million students in universities across the country. The last figure I saw was about 300 or 400,000 who have applied. Does that mean 1.6 million students can afford their education? Certainly not,” he said.

He explained that many students are reluctant to apply because they fear the burden of repayment.

“Students are afraid of how they will repay these loans. They are not happy that their education cannot be supported by government unless they take a loan,” he stated.

ASUU Rejects NELFUND Board Offer

Prof. Piwuna also revealed that ASUU declined an invitation to join NELFUND’s governing board, stressing that the union prefers to maintain its independence while hoping for the scheme’s success.

“We are not part of NELFUND. We turned down their offer to make us board members. We hope it succeeds because it is said to be in the interest of students and their future,” he said.

Calls for Tuition Fee Harmonisation

The ASUU president further decried the arbitrary hike in tuition fees across federal and state universities, some of which have increased by up to 1,000 percent, and called for regulation by the Ministry of Education.

“You pay about ?125,000 to study medicine in one federal university, while another charges nearly ?400,000 for the same course. There’s a clear need for harmonisation if they truly want a fair system,” he said.

He maintained that providing grants to universities would have been a better and fairer funding model.

“If you decide that for first-generation universities, this is what you do; for second and third-generation universities, this is what you give them—it harmonises everything,” he said.

Prof. Piwuna concluded that ASUU is not opposed to government policies but seeks a more inclusive and equitable education funding system.

 

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