The Nigerian Education Loan Fund (NELFUND) has dismissed as false a viral publication claiming that President Bola Tinubu has approved life imprisonment for students who fail to repay their education loans after graduation.
NELFUND described the report as “fake news” in a post shared on its official X account on Sunday, alongside an image of the purported newspaper front page being circulated online.
The doctored publication, dated Thursday, May 27, 2027, carried the sensational headline: “All students who fail to repay their loan after graduation will go to jail for life.”
However, NELFUND stamped the image with a prominent red “FAKE” inscription, making it clear that the purported announcement did not originate from the Nigerian government or the Fund.
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The clarification comes amid growing concerns over misleading information surrounding the Federal Government’s student loan scheme.
NELFUND has previously warned Nigerians about fabricated circulars, notices and other false publications concerning the scheme, including claims about the suspension of student loan disbursements.
The Fund was established under the Student Loans (Access to Higher Education) Act, which was signed into law by President Bola Tinubu and subsequently re-enacted in 2024.
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NELFUND administers zero-interest student loans to eligible Nigerian students in public tertiary institutions. The scheme covers institutional charges and, where applicable, provides upkeep allowances to beneficiaries.
Contrary to the claim circulating online, beneficiaries are not required to commence repayment immediately after graduation.
Under the current repayment framework, repayment becomes due two years after completion of the National Youth Service Corps (NYSC) programme, provided the beneficiary is employed or earning an income.
For beneficiaries in paid employment, 10 per cent of their monthly salary, wages or other income is deducted at source by their employer for the repayment of the loan.
Self-employed beneficiaries, on the other hand, are required to remit 10 per cent of their total monthly profit to NELFUND.
Beneficiaries who remain unemployed and have no income after the repayment period may also seek an extension by submitting a sworn statement in accordance with the procedure prescribed by the NELFUND Board.
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The viral claim of life imprisonment therefore does not reflect the current repayment provisions of the student loan scheme.
NELFUND urged members of the public to disregard the fake publication and rely on the Fund’s official communication channels for accurate and verified information concerning the student loan programme.
The Fund also advised Nigerians to exercise caution before sharing unverified information online, particularly publications relating to government policies and financial obligations.
