The Nigerian Education Loan Fund, NELFUND, has debunked a viral report claiming that President Bola Tinubu approved life imprisonment for students who fail to repay their education loans after graduation.
The Fund described the publication as “fake news” in a post on its official X account on Sunday, September 6.
NELFUND also shared an image of the purported newspaper front page being circulated online, placing a prominent red “FAKE” stamp across it to show that the publication was not an official government announcement.
The doctored front page, dated Thursday, May 27, 2027, attributed the following statement to President Tinubu: “All students who fail to repay their loan after graduation will go to jail for life.”
The agency’s latest clarification comes amid repeated efforts to counter false information surrounding Nigeria’s student loan programme.
NELFUND has previously issued warnings over fabricated circulars and notices claiming that the student loan disbursement programme had been suspended.
The Fund operates under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and subsequently re-enacted in 2024.
Through the scheme, eligible Nigerian students enrolled in public tertiary institutions can access zero-interest loans to cover institutional charges and, where applicable, upkeep allowances.
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Contrary to the viral claim, repayment is not automatically required immediately after a beneficiary graduates.
Under the current framework, repayment becomes due two years after the beneficiary completes the National Youth Service Corps programme, provided the beneficiary is employed or earning an income.
For beneficiaries in paid employment, employers are required to deduct 10 per cent of their monthly salary, wages and other income at source and remit the amount towards repayment.
Self-employed beneficiaries, on the other hand, are required to pay 10 per cent of their total monthly profit to NELFUND.
The repayment framework also makes provisions for beneficiaries who remain unemployed and have no income after the repayment period becomes due.
Such beneficiaries may apply for an extension by submitting a sworn statement in accordance with the procedure prescribed by the NELFUND Board.
The Fund’s latest warning therefore urges beneficiaries and members of the public to be cautious about unverified reports concerning the student loan scheme and rely on official channels for accurate information.