The Nigerian Education Loan Fund (NELFUND) has dismissed as “fake news” a circulating image claiming that President Bola Tinubu announced life imprisonment for students who fail to repay their education loans after graduation.
In a post on its official X account on Sunday, NELFUND shared the doctored image, which was designed to resemble the front page of The Daily Tribune dated Thursday, May 27, 2027.
The purported newspaper carried the headline: “Tinubu: All students who fail to repay their loan after graduation will go to jail for life.”
NELFUND, however, overlaid the image with a large red “FAKE” stamp, making clear that the claim was false.
The clarification comes amid a series of false claims and fabricated documents concerning the student loan scheme. NELFUND has previously debunked fake circulars, claims about the suspension of upkeep payments, and reports suggesting that beneficiaries are required to begin repaying their loans while still in school or immediately after graduation.
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 agency administers interest-free student loans to eligible Nigerians enrolled in public tertiary institutions, covering institutional fees and providing monthly upkeep allowances.
Under the law, repayment is not immediately due upon graduation. Beneficiaries are required to begin repayment two years after completing the National Youth Service Corps programme, or receiving an exemption, and only when they are gainfully employed.
Repayment is capped at 10 per cent of a beneficiary’s gross income or salary, with deductions made at source by employers where applicable.
Self-employed beneficiaries are also required to remit 10 per cent of their income towards repayment.
Beneficiaries who remain unemployed after the two-year period may apply for an extension by providing a sworn statement confirming their unemployment status.
The provisions mean that the claim of automatic life imprisonment for students who fail to repay their loans after graduation is not part of the stated repayment framework.
