The Vice-Chancellor of the University of Benin (UNIBEN), Professor Edoba Omoregie (SAN), has expressed concern over students’ low interest in the Nigerian Education Loan Fund (NELFUND), despite what he described as the scheme’s favourable repayment conditions.
Omoregie said the student loan programme offered more flexible terms than similar schemes in countries such as the United States and the United Kingdom, where graduates often face substantial repayment obligations.
Speaking on Monday, the vice-chancellor described NELFUND as one of the most significant public policy initiatives in Nigeria since independence, arguing that its interest-free structure and flexible repayment arrangements could make access to higher education easier for students.
He explained that beneficiaries are granted a moratorium before repayment begins, adding that deductions would be made from their earnings only after they start working.
According to him, the arrangement reduces the financial pressure on graduates and makes the scheme more attractive than conventional student loans.
Omoregie also commended President Bola Tinubu for signing the initial legislation establishing NELFUND and subsequently supporting a revised law to address shortcomings in the original framework.
The vice-chancellor, who disclosed that he was part of the technical team involved in reviewing the initial legislation, said the earlier version contained restrictive provisions, including requirements for guarantors, limits on loan amounts and the exclusion of students’ upkeep from the benefits.
He said the revised framework was designed to make the programme more accessible and better suited to the needs of students and their sponsors.
Describing the scheme as being closer to a grant than a conventional loan, Omoregie expressed optimism that its favourable conditions could eventually attract international attention, urging students to take greater advantage of the opportunity.
“NELFUND is like manna from heaven. That is the way I would describe it. It is one of the most significant public policy initiatives ever introduced into this country since independence,” he said.
He added that the scheme’s interest-free nature, repayment moratorium and deductions from beneficiaries’ earnings were designed to prevent graduates from being overwhelmed by debt.
Omoregie said the programme could become a model for student financing if its benefits were fully understood and utilised by eligible students.
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