The Nigerian Education Loan Fund (NELFUND) has clarified that no beneficiary of its student loan scheme is required to begin repayment while still in school, stressing that repayment only starts after graduation and gainful employment, in line with the provisions of the law.
The clarification followed circulating claims in the media and on social platforms alleging that beneficiaries had been directed to commence repayment of their loans. Reacting to the reports, NELFUND dismissed them as untrue.
“NELFUND wishes to categorically state that these reports are false, misleading, and unfounded,” the Fund said.
The statement also followed an official clarification by the Vice-Chancellor of the University of Benin (UNIBEN), Professor Edoba Bright Omoregie (SAN), who disowned a purported circular outlining repayment procedures for NELFUND loans. According to him, “The University has confirmed that the document did not originate from the institution and that no repayment guideline has been issued by NELFUND or the Federal Government.”
Reinforcing this position, the Fund stated, “For the avoidance of doubt, NELFUND has not issued any directive requesting students to begin repayment of their loans.”
NELFUND explained that the repayment framework is clearly stated in the NELFUND Establishment Act. The law provides that no beneficiary is required to repay the loan while still in school. It also states that no repayment is required while a beneficiary remains unemployed after graduation, and that loan repayment only commences, as applicable, after the beneficiary secures gainful employment.
According to the Fund, “NELFUND remains fully committed to its mandate of expanding access to higher education by providing transparent, fair, and student-friendly financing solutions.” It added that any official information regarding loan administration or repayment will only be communicated through verified NELFUND channels and formal government platforms.
The Fund urged students, parents, institutions, and the general public to disregard the fake circular and related publications, and to avoid spreading unverified information capable of causing unnecessary anxiety among students.
Earlier, NELFUND had moved to partner with the National Youth Service Corps (NYSC) to recover student loans after two years of service.
NELFUND also appreciated the continued cooperation of stakeholders and reassured all beneficiaries of its commitment to due process, accountability, and the welfare of Nigerian students nationwide.
