NELFUND Denies Life Imprisonment Claims for Loan Defaulters

The Nigerian Education Loan Fund (NELFUND) has dismissed a viral claim that President Bola Tinubu approved life imprisonment for graduates who fail to repay their education loans. This clarification was issued on Sunday following the circulation of an image purportedly showing a newspaper report on the matter.

NELFUND labeled the publication as false and shared an image of the alleged newspaper page on its official social media platform, marking it as fake. NELFUND was established under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and re-enacted in 2024.

The agency provides interest-free loans to eligible Nigerian students in public tertiary institutions, assisting with institutional charges and monthly upkeep payments. Repayment is structured to begin two years after completing the National Youth Service Corps (NYSC) program or receiving an exemption, and is contingent upon the beneficiary being gainfully employed.