The Nigerian Education Loan Fund (NELFUND) has debunked a viral claim that students who fail to repay their education loans after graduation will face life imprisonment.
The Fund described the claim as “fake news” after an image purporting to be the front page of The Daily Tribune circulated on social media.
The doctored publication, dated Thursday, May 27, 2027, carried a headline claiming that President Bola Tinubu had declared that all students who failed to repay their loans after graduation would be sent to jail for life.
NELFUND shared the image on its official X account on Sunday and placed a prominent “FAKE” stamp across it, warning members of the public not to believe or circulate the claim.
The agency has repeatedly had to address misinformation surrounding the student loan scheme, including false claims about the suspension of upkeep payments and reports that beneficiaries were required to begin repaying their loans while still in school or immediately after graduation.
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 Fund provides interest-free loans to eligible students in public tertiary institutions to cover approved institutional fees and, where applicable, monthly upkeep allowances.
Under the current framework, repayment does not begin immediately after graduation. For beneficiaries who complete the National Youth Service Corps programme, repayment becomes due two years after completing NYSC, or after obtaining an exemption, provided the beneficiary is gainfully employed.
For beneficiaries in paid employment, repayment is tied to their income, with 10 per cent of their monthly salary, wages and other income deducted at source where applicable. Self-employed beneficiaries are similarly expected to remit 10 per cent of their income towards repayment.
The framework also makes provision for graduates who remain unemployed. Such beneficiaries can seek an extension by providing a sworn statement confirming their unemployment status.
The clarification therefore means that having an outstanding NELFUND loan is not, by itself, a basis for life imprisonment. While the Fund has mechanisms for recovering loans, the viral claim that President Tinubu approved life imprisonment for student loan defaulters does not represent the government’s student-loan policy.
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