The Nigerian Education Loan Fund has refuted widespread reports claiming that President Bola Tinubu sanctioned life imprisonment for students who default on their higher education loans.
In an official statement shared via its official X account on Sunday, the agency categorized the viral claim as fake news and uploaded an image of the fraudulent newspaper front page that had been circulating on social media platforms.
To ensure clarity, NELFUND stamped a large red FAKE label across the screenshot of the post to signal to the public that the report did not emanate from any official government source.
The fabricated image, which bore a future date of May 27, 2027, carried a prominent headline alleging that President Tinubu had announced life sentences for any graduate failing to settle their student debt.
Refuting the claim, NELFUND urged the public to disregard the fabricated article and rely strictly on verified updates released through its authorized media platforms.
This response forms part of a series of public warnings by the organization against misinformation surrounding the national student loan initiative. NELFUND has previously debunked false reports suggesting that loan disbursements had been suspended or that beneficiaries were mandated to begin repayments while still enrolled in school or immediately upon graduation.
Established under the Student Loans Access to Higher Education Act, which was re-enacted by President Tinubu in 2024, NELFUND provides interest-free financial aid to eligible Nigerian students in public tertiary institutions to cover institutional fees and living stipends.
According to the official legal framework, loan repayment does not start immediately after graduation. Instead, repayments are slated to commence two years after the completion of the mandatory National Youth Service Corps scheme, provided the beneficiary has secured employment or is earning an income.
For employed beneficiaries, employers are tasked with deducting 10 percent of the individual’s monthly salary at source to remit to the Fund. Self-employed graduates are required to contribute 10 percent of their monthly business profits.
In cases where a beneficiary remains unemployed or without income after the two-year post-NYSC window, they can apply for an extension by submitting a sworn affidavit detailing their situation to the NELFUND Board.
The actual legal guidelines confirm that the loan scheme contains no provision for life imprisonment for unpaid loans, directly contradicting the viral claims.
