NELFUND Is Permanent, Not a Scam — Federal Government Reaffirms Commitment to Student Loan Scheme

The Federal Government has reaffirmed that the Nigerian Education Loan Fund (NELFUND) is a permanent intervention designed to support students’ access to higher education and prevent dropouts due to financial constraints.

This assurance was given on Wednesday, January 14, 2026, during an interactive session between NELFUND and beneficiary institutions in Ondo State, held at the Federal University of Technology, Akure (FUTA).

Speaking at the event, the Executive Director of NELFUND, Mr. Mustapha Iyal, described the scheme as transparent, apolitical, and student-centered. He explained that the engagement was aimed at increasing awareness, addressing operational challenges, and understanding institution-specific issues affecting loan access and implementation.

Mr. Iyal emphasized that the education loan scheme represents a strategic investment by government in Nigerian youths, noting that beneficiaries begin repayment three to four years after completing national service and are not subjected to harassment or restrictive conditions. He clarified that loan repayment does not prevent beneficiaries from securing employment or travelling abroad, adding that repayment mechanisms are structured around employment status.

Ondo State Commissioner for Education, Science and Technology, Prof. Igbekele Ajibefun, described NELFUND as a flagship initiative of President Bola Ahmed Tinubu that has significantly strengthened the education sector. He stated that the scheme has enabled many students who would otherwise have dropped out to continue and complete their studies.

In a welcome address delivered on her behalf by the Deputy Vice-Chancellor (Development), Prof. Sunday Oluyamo, the Vice-Chancellor of FUTA, Prof. Adenike Oladiji, commended the Federal Government and NELFUND for the initiative. She noted that the loan scheme has eased institutional challenges in supporting indigent students, reduced financial pressure on families, and improved student welfare.

Other Vice-Chancellors, including Prof. Olugbenga Ige of Adekunle Ajasin University, Akungba-Akoko, corroborated these views, dismissing early public skepticism about the scheme. They confirmed that many students across their institutions are benefiting from the loan programme.

The interactive session also addressed concerns over disparities in academic calendars, which sometimes hinder timely loan access. Mr. Iyal clarified that such challenges were not deliberate and assured stakeholders that all issues raised would be reviewed. He reiterated that NELFUND would collaborate with relevant agencies to ensure repayment compliance after beneficiaries secure employment.

The session was attended by Vice-Chancellors and representatives from FUTA, Adeyemi Federal University of Education, the University of Medical Sciences, Ondo, and Olusegun Agagu University of Science and Technology, Okiti-Pupa, alongside student leaders and other key stakeholders.