The Nigerian Education Loan Fund (NELFUND) has dismissed as fake a circulating claim that President Bola Tinubu approved life imprisonment for students who fail to repay their education loans after graduation.
NELFUND described the claim as false after an image purporting to be the front page of The Daily Tribune circulated online.
The purported newspaper front page, dated Thursday, May 27, 2027, carried a headline claiming that Tinubu had ordered students who failed to repay their loans after graduation to face life imprisonment.
NELFUND shared the image on its official social media account with a prominent “FAKE” stamp, warning the public against believing or circulating the claim.
The Fund has previously issued clarifications over fabricated notices and false claims concerning the student loan scheme, including allegations that upkeep payments had been suspended and that beneficiaries were required to begin repayment while still in school or immediately after graduation.
NELFUND administers the Federal Government’s interest-free student loan programme for eligible students in Nigerian tertiary institutions.
The scheme provides funding for institutional charges and upkeep, while beneficiaries are expected to repay the loans under the terms of the programme.
According to NELFUND’s published loan terms, beneficiaries who participate in the National Youth Service Corps are expected to begin repayment two years after completing the NYSC programme.
Repayment is tied to employment. Beneficiaries are required to update their employment details once they secure jobs, while 10 per cent of their monthly salary is deducted at source for loan repayment.
Self-employed beneficiaries are also required to provide details of their businesses and comply with the applicable repayment arrangements.
The loan terms provide for recovery mechanisms where repayment becomes due and is not made.
One such mechanism is the Global Standing Instruction, which gives NELFUND authority to initiate recovery from money held in a beneficiary’s accounts with financial institutions to offset outstanding loan obligations.
However, the official NELFUND terms do not provide for life imprisonment simply because a beneficiary fails to repay a student loan.
NELFUND’s student loan portal also states that repayment begins two years after NYSC, further indicating that beneficiaries are not expected to commence repayment immediately after graduation.
The latest false claim appears to have been presented in the format of a newspaper report, potentially giving it an appearance of credibility.
NELFUND urged members of the public to rely on its official channels for accurate information about the student loan scheme and repayment requirements.
