Monday, September 7th 2026

NELFUND Debunks Claim of Life Imprisonment for Students Who Fail to Repay Loans


NELFUND Debunks Claim of Life Imprisonment for Students Who Fail to Repay Loans
3 views
    Share :

The Nigerian Education Loan Fund (NELFUND) has dismissed as fake a viral publication claiming that President Bola Tinubu ordered students who fail to repay their education loans after graduation to face life imprisonment.

The agency described the claim as “fake news” in a post on its official X account on Sunday, while sharing an image of the purported newspaper front page being circulated online.

The doctored publication, dated Thursday, May 27, 2027, carried a headline claiming that Tinubu had declared: “All students who fail to repay their loan after graduation will go to jail for life.”

NELFUND placed a prominent red “FAKE” stamp across the image, making it clear that the alleged announcement did not originate from the Federal Government.

The clarification comes amid repeated warnings from the Fund over misinformation surrounding the student loan scheme.

NELFUND has previously debunked fabricated circulars and notices claiming that the student loan disbursement programme had been suspended, urging members of the public to rely on official channels for accurate information.

The Fund was established under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and re-enacted in 2024.

NELFUND is responsible for administering zero-interest loans to eligible Nigerian students in public tertiary institutions. The loans are designed to cover institutional charges and, where applicable, provide upkeep allowances.

Contrary to the viral claim, repayment of the loans does not begin immediately after graduation.

Under the current framework, beneficiaries are expected to begin repayment two years after completing the National Youth Service Corps (NYSC) programme, provided they are employed or earning an income.

For beneficiaries in paid employment, 10 per cent of their monthly salary, wages and other income is deducted at source by their employers and remitted towards repayment of the loan.

Self-employed beneficiaries are required to remit 10 per cent of their total monthly profit to NELFUND.

However, beneficiaries who remain unemployed and have no income after the repayment period may apply for an extension by providing a sworn statement in accordance with conditions prescribed by the NELFUND Board.

The Fund has continued to urge students and members of the public to verify information about the loan scheme through its official communication channels and disregard fabricated publications.

 

Comments:

Leave a Reply

Your email address will not be published. Required fields are marked *