The Nigerian Education Loan Fund (NELFUND) has dismissed reports claiming that President Bola Ahmed Tinubu approved life imprisonment for graduates who fail to repay their student loans.
The agency described the report as false and urged Nigerians to disregard the claim.
The clarification followed the circulation of an image on social media purportedly showing a newspaper front page reporting that beneficiaries who default on their student loans would face life imprisonment.
Reacting to the viral report, NELFUND shared the image on its official social media platform and described it as fake.
NELFUND was established under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and subsequently re-enacted in 2024.
The agency provides interest-free loans to eligible students in Nigerian public tertiary institutions to assist with approved institutional charges and, where applicable, monthly upkeep.
Under the existing repayment framework, beneficiaries are not expected to begin repaying their loans immediately after graduation.
Repayment is scheduled to commence two years after a beneficiary completes the National Youth Service Corps (NYSC) programme or obtains an exemption from the scheme.
However, repayment obligations are tied to employment, with beneficiaries expected to begin repayment once they secure gainful employment after the applicable waiting period.
NELFUND’s clarification effectively debunks the viral claim that graduates who default on student loans could be sentenced to life imprisonment.
