The Nigerian Education Loan Fund (NELFUND) has debunked a fake news report circulating on social media claiming that President Bola Ahmed Tinubu approved life imprisonment for students who fail to repay their loans after graduation.
NELFUND refuted the claim in a statement posted on its official X account today, Sunday, sharing an edited image designed to resemble the front page of The Daily Tribune newspaper dated May 27, 2027.
The headline of the fake story read: “Tinubu: All students who fail to repay their student loans after graduation will go to prison forever.”
The agency stamped the word “FAKE” across the image, emphasizing that the claim is false and completely unfounded.
NELFUND has repeatedly warned the public against fraudulent documents and false announcements regarding the loan scheme, including rumors that student upkeep stipends had been suspended or that beneficiaries are required to start repayments while still in school.
Under the Student Loans (Access to Higher Education) Act signed by President Tinubu, NELFUND provides interest-free loans to eligible Nigerian students attending public tertiary institutions.
The agency was created following the removal of the fuel subsidy and rising higher education costs that caused many students to drop out. NELFUND offers a ₦20,000 monthly upkeep allowance along with institutional registration fee loans for students in public schools.
Under the law, loan repayment begins two years after completing the National Youth Service Corps (NYSC) program, receiving an exemption certificate, or upon securing gainful employment.
Repayments may be deducted directly at source, capped at a maximum of 10% of the beneficiary's income or salary.
Self-employed beneficiaries are expected to remit a similar percentage from their income.
NELFUND added that beneficiaries who remain unemployed after the two-year grace period can request an extension by submitting a sworn affidavit.