UNIBEN VC Praises NELFUND, Raises Concern Over Student Participation

The Vice-Chancellor of the University of Benin, Professor Edoba Omoregie (SAN), has praised the Nigerian Education Loan Fund (NELFUND), describing its structure as more favourable to students than loan systems in the United States and the United Kingdom.

Omoregie said the Nigerian scheme stood out because it offered interest-free loans, provided a period before repayment begins and allowed beneficiaries to repay through deductions from their earnings after meeting the applicable conditions.

He made the remarks in an interview published on Monday, October 26, 2026, during which he also expressed concern about the level of interest shown by students in accessing the fund.

The vice-chancellor described NELFUND as one of the most significant public policy initiatives in Nigeria since independence, arguing that its provisions could reduce the financial pressure associated with pursuing tertiary education.

He also commended President Bola Tinubu for supporting the development of the current student loan framework after the earlier legislation introduced during the administration of former President Muhammadu Buhari.

Omoregie said he participated in the technical team involved in reviewing the initial version of the legislation. According to him, the earlier proposal contained provisions, including requirements for guarantees and restrictions on the amount students could access, which raised concerns about the scheme’s accessibility.

The revised framework, he argued, offered more favourable conditions for students and their sponsors.

NELFUND’s published guidelines confirm that the scheme provides interest-free loans to eligible students in Nigerian tertiary institutions. The facility covers institutional charges and can also provide upkeep support where requested and approved.

Under the fund’s published repayment rules, repayment is generally due two years after a beneficiary completes the National Youth Service Corps programme. For employed beneficiaries, 10 per cent of their monthly salary is deducted at source, while self-employed beneficiaries are required to remit 10 per cent of their monthly profit.

Beneficiaries who remain unemployed after the applicable period are required to notify the fund through a sworn court affidavit every three months while they remain unable to secure employment.

These arrangements form part of the framework Omoregie cited in explaining why he considers NELFUND more favourable than some foreign student loan models.

However, his comparison represents his assessment of the different systems rather than the outcome of a published comparative study examining their interest rates, eligibility requirements, coverage and long-term repayment outcomes.

The vice-chancellor’s concern about student participation also raises questions about awareness of the scheme and the extent to which eligible students understand its application process and repayment obligations.

In March 2026, the University of Benin hosted a NELFUND sensitisation workshop to educate students about eligibility, application procedures, loan disbursement and repayment conditions.

The university said the programme was organised to help students understand how to access the federal government’s student loan scheme.

While NELFUND provides an avenue for eligible students to obtain financial assistance for their education, beneficiaries remain responsible for repayment under the applicable rules.

Omoregie’s remarks have renewed attention on the potential benefits of the scheme and the need to ensure that students understand how it works before deciding whether to apply.