The Nigerian Education Loan Fund (NELFUND) has officially debunked a viral claim that President Bola Tinubu approved life imprisonment for students who fail to repay their education loans after graduation. The agency stamped the circulating image of a doctored newspaper front page with a bold red "FAKE" mark, confirming the story has no government basis.
Fabricated Front Page Dismissed
The fabricated front page, dated Thursday, May 27, 2027, carried a headline attributing the following words to the president: "All students who fail to repay their loan after graduation will go to jail for life." NELFUND addressed the circulation on Sunday, September 6, 2026, via its official X account @NELFUND, urging the public to disregard the false information.
This is not the first time NELFUND has had to counter false information about the student loan programme. The Fund has previously debunked fabricated circulars and notices falsely claiming the disbursement programme had been suspended.
Actual Repayment Rules Under NELFUND
Under the existing framework, loan repayment does not begin the moment a beneficiary graduates. According to Channels Television, repayment only kicks in two years after the beneficiary completes the National Youth Service Corps programme, and only once they are employed or earning an income.
For those in paid employment, employers are required to deduct 10 per cent of the worker's monthly salary, wages, and other income at source and remit it to NELFUND. Self-employed graduates are expected to pay 10 per cent of their total monthly profit directly to the Fund. Beneficiaries who remain unemployed beyond the repayment window can apply for an extension by submitting a sworn statement in line with guidelines set by the NELFUND Board.
NELFUND was created under the Student Loans (Access to Higher Education) Act, signed by President Tinubu and re-enacted in 2024. It provides zero-interest loans to eligible students enrolled in public tertiary institutions, covering tuition and related institutional charges, as well as upkeep allowances in applicable cases.
Pattern of Misinformation and Official Response
Sunday's rebuttal is part of a broader pattern of misinformation surrounding the loan scheme. NELFUND has consistently urged students and the public to rely only on its official communication channels for accurate updates on the programme.
Meanwhile, Legit.ng also reported that President Tinubu issued a directive channelling liquid funds recovered by the EFCC to NELFUND. The Federal Executive Council approved a plan to redirect unclaimed dividends from two capital market trust funds to NELFUND. The Minister of Education, Tunji Alausa, made the announcement after the FEC meeting on Wednesday, August 19, citing Tinubu's campaign promise on education access.
