The Nigerian Education Loan Fund (NELFUND) has debunked a viral publication claiming that President Bola Tinubu has approved life imprisonment for students who fail to repay their education loans after graduation.
NELFUND described the claim as “fake news”, urging Nigerians to disregard the publication circulating across social media.
The Fund made this known in a post on its official X account on Sunday, where it also shared an image of the purported newspaper front page being circulated online.
Viral publication claims students will face life imprisonment
The doctored publication, dated Thursday, May 27, 2027, carried a headline claiming that President Tinubu had declared: “All students who fail to repay their loan after graduation will go to jail for life.”
NELFUND placed a prominent red “FAKE” stamp across the image, indicating that the purported announcement did not originate from the Federal Government.
The agency did not disclose who created or circulated the fabricated publication but warned against misleading information concerning the student loan scheme.
NELFUND clarifies loan repayment rules
The latest clarification comes amid previous warnings by NELFUND over fabricated circulars, notices and claims concerning the student loan programme.
NELFUND was established under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and subsequently re-enacted in 2024.
The Fund administers zero-interest loans to eligible Nigerian students in public tertiary institutions to support institutional charges and, where applicable, upkeep allowances.
Contrary to the viral claim, repayment does not begin immediately after graduation.
Under the current framework, beneficiaries are expected to commence repayment two years after completing the National Youth Service Corps programme, provided they are employed or earning an income.
How beneficiaries are expected to repay loans
For beneficiaries in paid employment, 10 per cent of their monthly salary, wages and other income is deducted at source by their employers for loan repayment.
Self-employed beneficiaries, on the other hand, are required to remit 10 per cent of their total monthly profit to NELFUND.
The repayment framework also makes provision for beneficiaries who remain unemployed and have no income after the repayment period.
Such beneficiaries can seek an extension by providing a sworn statement in accordance with the procedures prescribed by the NELFUND Board.
Fund urges public to disregard false information
The agency’s latest warning is part of its ongoing efforts to counter misinformation surrounding the student loan scheme.
NELFUND has previously debunked fabricated circulars and notices claiming changes or suspension of student loan disbursements.
The Fund urged students, beneficiaries and members of the public to rely on its official communication channels for accurate information about the loan scheme and repayment requirements.
The viral claim that students who fail to repay their NELFUND loans will be sentenced to life imprisonment is therefore false, according to the agency.
