UNIBEN VC Praises NELFUND Student Loan Scheme, Says Interest Is Lower Than Expected

The Vice-Chancellor of the University of Benin (UNIBEN), Professor Edoba Omoregie (SAN), has described the Nigerian Education Loan Fund (NELFUND) as one of the most significant public policy initiatives in Nigeria since independence.

Omoregie praised the student loan scheme for its interest-free structure, repayment moratorium and income-based repayment approach, arguing that its model offers important advantages over student financing systems in countries such as the United States and the United Kingdom.

However, the UNIBEN vice-chancellor expressed disappointment over what he described as the low level of interest shown so far by eligible students in accessing the fund.

UNIBEN VC Describes NELFUND as a Major Education Initiative

Speaking about the scheme, Omoregie said NELFUND could significantly improve access to higher education by reducing the financial burden on students and their sponsors.

He commended President Bola Tinubu for signing the initial student loan legislation introduced during the administration of former President Muhammadu Buhari and subsequently supporting a revised version intended to address weaknesses in the original framework.

“NELFUND is like manna from heaven. It is one of the most significant public policy initiatives ever introduced into this country since independence. I have to commend President Bola Tinubu for signing the NELFUND bill,” Omoregie said.

The vice-chancellor explained that the original proposal had undergone changes before it was enacted, with some provisions raising concerns about the scheme's accessibility and practical implementation.

According to him, the revised legislation addressed some of those concerns and made the scheme more accommodating to students and their sponsors.

Why the UNIBEN VC Believes NELFUND Is Different

Omoregie identified several features that, in his view, distinguish NELFUND from conventional student loan arrangements.

These include its interest-free structure, a repayment moratorium that postpones repayment until beneficiaries meet the applicable conditions, and a repayment system designed to deduct a portion of beneficiaries' earnings rather than demand a large lump-sum payment.

He also recalled that the earlier proposal included requirements such as guarantees and limits on the amount available, which he believed could restrict access to the facility.

The revised framework, he said, was intended to make financial assistance more accessible to students who might otherwise struggle to fund their education.

UNIBEN VC Compares NELFUND With Student Loans Abroad

The UNIBEN vice-chancellor argued that NELFUND could attract international interest because of its financing and repayment structure.

He contrasted the Nigerian scheme with student loan systems in countries such as the United States and the United Kingdom, where repayment obligations and the cost of borrowing can be concerns for beneficiaries.

“I am sure even from outside the country now they will come and study sooner than later because unlike many of the student loans that you have in America, UK and all that which makes them skeptical, this one is an interest free loan,” he said.

Omoregie suggested that the scheme's structure was sufficiently supportive that it could be likened to an education grant, although beneficiaries are still expected to repay the funds in accordance with the applicable rules.

“Maybe they should even use another word instead of calling it a loan. This is more like a grant,” he added.

NELFUND Repayment: What Students Should Know

Under the model described by Omoregie, beneficiaries are not expected to begin repayment immediately while they are still studying. Repayment is subject to the scheme's eligibility and repayment conditions, with deductions linked to earnings once beneficiaries meet the applicable requirements.

The approach is intended to reduce the pressure on graduates by avoiding the demand for repayment in one large payment.

However, students and prospective applicants should consult NELFUND's official guidelines for the current eligibility requirements, application procedures, repayment conditions and any updates to the scheme.

Call for Greater Student Participation

Despite his strong endorsement of the initiative, Omoregie said he was not satisfied with the level of interest shown by students in accessing the fund.

His remarks highlight the importance of improving awareness of available education financing options, particularly among students who face financial difficulties in meeting tuition and other approved educational expenses.

NELFUND is intended to support eligible students and reduce financial barriers to higher education. Students considering the scheme should review the official information carefully before applying.