By Damilare Adeleye
Recently, Oladepo Caleb Olugbenga, the overall best graduating student of Ladoke Akintola University of Technology (LAUTECH), sparked a heated online debate after attributing his academic success to the Nigerian Education Loan Fund (NELFUND). What began as an innocuous expression of gratitude quickly ignited a firestorm on social media, with critics scrutinizing the scheme’s long-term implications while supporters rallied behind its immediate benefits.
NELFUND is a federal government initiative designed to provide interest-free loans to eligible students in tertiary institutions. Following the signing of the establishing Act by President Bola Tinubu in April 2024, the fund became operational on May 24, 2024. The scheme covers tuition, fees, and monthly upkeep for qualified Nigerians in approved tertiary and vocational institutions.
As a revolving loan, beneficiaries are mandated to begin repayment two years after completing the National Youth Service Corps (NYSC), provided they have secured stable income through employment or entrepreneurship. The core objective is to ensure that no Nigerian student is forced to drop out due to financial constraints.
By April 2026, NELFUND reported that over 1.6 million students across 299 federal and state-owned institutions had benefited from the scheme. While many hail it as a transformative intervention in Nigeria’s education sector, others caution that it may evolve into a crushing debt burden for graduates who come from financially vulnerable backgrounds. These critics argue that in a struggling economy, grants rather than loans would be a more sustainable alternative.
Social commentator Ayotunde Adelakun, for instance, links the growing reliance on student loans to broader economic pressures. He argues that recent policy shifts have significantly inflated the cost of living, making higher education less affordable for the average family.
“NELFUND was a handy lifesaver, but it was the current administration’s economic displacements that threw undergraduates under the bus,” Adelakun noted. He suggested that while the fund is beneficial, it was the removal of subsidies and subsequent inflation that forced parents to depend on loans to see their children through university.
In a sepwrate reaction, Entrepreneur Tolulope Charles praised the scheme, highlighting its potential to unlock opportunities for academically gifted but disadvantaged students.
“I know many brilliant individuals who lack certificates because there was no NELFUND when they were in school,” Charles remarked. “If this facility had existed then, they would have graduated with stellar results. When a policy is right, we must applaud it.”
Indeed, NELFUND is widely viewed as a strategic cushion against the economic strain following the removal of fuel subsidies and the subsequent spike in tuition fees across public institutions. It is plausible that without these fiscal shifts, the loan fund might never have been conceptualized. However, while the facility is a significant intervention that is likely here to stay, it is important to remember that it is not a gift.
At best, NELFUND offers temporary relief to help undergraduates weather the financial storms of their study years. The true challenge will emerge post-graduation, when beneficiaries must juggle the costs of rent, family support, and basic survival with the weight of debt repayment. For a fresh graduate, this intersection of responsibilities could prove overwhelming.
Ultimately, providing loans alone is insufficient. For NELFUND to be a true success, the government must create an enabling environment that allows graduates to thrive. This requires sustainable job creation with competitive wages, robust support for MSMEs through grants, and empowerment programs for local talent. Such measures will not only make loan repayment more feasible but, more importantly, ensure a better quality of life for young Nigerians.