The Nigerian Education Loan Fund (NELFUND) has debunked a viral claim that students who fail to repay their education loans after graduation will face life imprisonment.
The agency described the publication as “fake news” in a post on its official X account on Sunday, September 6, 2026. NELFUND also shared an image of the purported newspaper front page circulating online, marked prominently with a red “FAKE” stamp.
The doctored publication, dated May 27, 2027, falsely attributed a statement to President Bola Tinubu claiming that students who failed to repay their loans after graduation would be jailed for life.
NELFUND’s clarification comes amid continued misinformation surrounding Nigeria’s student loan programme. The agency has previously warned the public about fabricated notices and circulars concerning the scheme.
NELFUND was established under the Student Loans (Access to Higher Education) Act, which was signed into law by President Tinubu and re-enacted in 2024. The Fund provides zero-interest loans to eligible students in public tertiary institutions to cover institutional charges and, where applicable, upkeep allowances.
When Does Student Loan Repayment Begin?
Under the current framework, repayment does not begin immediately after graduation.
Repayment becomes due two years after completion of the National Youth Service Corps (NYSC) programme, provided the beneficiary is employed or earning an income.
For beneficiaries in paid employment, 10 per cent of their monthly salary, wages and other income is deducted at source by the employer for repayment.
Self-employed beneficiaries are required to remit 10 per cent of their total monthly profit to NELFUND.
Beneficiaries who remain unemployed and have no income after the repayment period may seek an extension by submitting a sworn statement in accordance with procedures prescribed by the NELFUND Board.
NELFUND urged the public to disregard the viral claim of life imprisonment, stressing that the purported announcement did not originate from the government.
