By: Favour Ogundare
Student loans, both locally and globally, are meant to provide financial ease for individuals pursuing higher education. In line with this sentiment, the Nigerian federal government launched the long-anticipated Nigerian Education Loan Fund (NELFUND) in May 2024.
To qualify for the student loan scheme, applicants must be enrolled in an accredited university or polytechnic. Beneficiaries are also required to repay the loan two years after completing the National Youth Service Corps programme (NYSC).
Before the introduction of NELFUND in 2024, it will be recalled that Nigeria had once enacted a student loan scheme in 1972, which was officially launched in 1973. However, the scheme would last only for 21 years due to some certain irregularities. Of #46 million disbursed under the scheme, only #6 million was recovered as many beneficiaries were unable to repay their loans.
It is worth noting that this challenge is not unique to Nigeria. Since its inception in 1995, Kenyan student loan scheme has faced significant drawbacks, particularly due to high default rates and graduate unemployment. Despite attempts by the Kenyan government to enforce repayment through the Kenya Revenue Authority (KRA), many recipients have continued to default on their obligations.
Framed as a tool for removing financial barriers to public education, the NELFUND scheme, launched in 2024, situates Nigeria within a broader global trend toward neoliberalisation of higher education.While some have claimed that the loan scheme has enhanced access to public education, the policy, as argued by others, has deepened its commodification.
Despite being projected by the federal government as an avenue for access to public education, the loan scheme has been marred by numerous inconsistencies. In May 2025, Punch reported that some University graduates voiced their concerns over delayed disbursement of student loans, noting that funds were sent to their respective tertiary institutions only after they had graduated.Similarly, on May 1, 2025, Sahara Reporter highlighted irregularities in the disbursement of student loans under NELFUND. This report followed the alarming media claims that unauthorized deductions were made from students at 51 tertiary institutions. Although the federal government allocated #100 billion to the scheme, only #28.8 was dispensed to students directly, leaving a staggering #71.2 billion unaccounted for.
The situation persists even at the University of Ibadan. A feature by IndyPress in June 2025, highlighted the NELFUND issues that affected UI students, ranging from delayed disbursements to concerns like inaccurate verification.
Recently, NELFUND revised its policy, stating that loan stipends would only be disbursed to students on an academic session. It further cited some flaws among tertiary institutions in providing accurate and timely student information.
It will be recalled that when the loan scheme was introduced, it was met with immense flak by some students of the University of Ibadan who described it as a means of commodifying public education.
Even when Aweda Bolaji, the then University of Ibadan Students’ Union President, allegedly promoted the scheme to students, he faced criticism, with some students calling for his resignation. Globally, student loans have often caused more harm than good, with many graduates struggling for years to repay their debt. For instance, the former U.S. President Barack Obama did not finish repaying his student loans until after he assumed American presidency.
By introducing the loan scheme, Nigeria federal government is shirking its responsibility to fund the educational system adequately. This neglect undermines the nation’s potential to achieve self-sufficiency across all sectors.
NELFUND, as you will agree with me, has not proven to be a panacea to high cost of higher education across tertiary institutions in the country. Instead, it has worsened the situation as some students have had to defer their admissions due to the inability to cope with the anti-student policy. Equally troubling is the failure of the student government across tertiary to address the concern. The leadership of the National Association of Nigerian Students (NANS) has long been a weapon fashioned against the students. Rather than prioritizing student advocacy, it chooses affiliation with their oppressors. The association appears to have lost sight of its mandate.
At the University of Ibadan, the Students’ Union leadership has a history of misrepresenting students’ positions on neo-liberal education policies. Despite signing a social contract to uphold student welfare, it has often neglected their concerns. Consequently, some students have been forced to defer their admissions with our female students reportedly resorting to selling their organs to pay up their fees.
It is vital that the Nigeria federal government scraps the loan scheme and commits to the adequate funding of public education. The government should follow UNESCO’s recommendation that 15- 20 percent of the national budget should be allocated to the educational system . By so doing, it safeguards the citizens’ right to education, which is integral to their survival and development. It is high time our student leaders across tertiary institutions began to challenge anti-student policies. They are student leaders for a reason_to administer our concerns.
