The Nigerian Education Loan Fund (NELFUND) has dismissed as false a widely circulated report claiming that President Bola Ahmed Tinubu had approved life imprisonment for graduates who fail to repay their education loans.
The Fund, in a statement shared on its official X account on Sunday, described the report as fake news and warned Nigerians against relying on unverified publications about the student loan scheme.
The fabricated report, which appeared to mimic a newspaper front page, was dated May 27, 2027, and bore the headline: “All students who fail to repay their loan after graduation will go to jail for life.”
NELFUND subsequently marked the purported publication with a conspicuous red “FAKE” stamp, making it clear that the alleged directive did not come from the Federal Government.
The latest clarification follows previous warnings issued by the Fund over false circulars, notices and social media reports concerning the administration and disbursement of student loans.
NELFUND was established under the Student Loans (Access to Higher Education) Act, legislation signed by President Tinubu and subsequently re-enacted in 2024.
The Fund provides interest-free loans to eligible students enrolled in Nigerian public tertiary institutions. Depending on eligibility, the scheme covers institutional charges as well as upkeep allowances.
Contrary to the viral claim, beneficiaries are not expected to commence repayment immediately after completing their studies.
Under the existing repayment arrangement, repayment obligations begin two years after a beneficiary completes the National Youth Service Corps programme, provided the individual is employed or has a source of income.
For beneficiaries in formal employment, 10 per cent of their monthly salary, wages or other income is deducted at source by their employers and remitted toward repayment.
Self-employed beneficiaries, on the other hand, are expected to remit 10 per cent of their monthly profit to NELFUND.
The Fund also provides provisions for beneficiaries who remain unemployed and have no source of income after the repayment period. Such beneficiaries may apply for an extension by submitting a sworn statement in line with procedures established by the NELFUND Board.
NELFUND therefore urged the public to disregard the purported newspaper publication and obtain information about the student loan programme only through its verified communication channels.
