The Vice-Chancellor of the University of Benin, Professor Edoba Omoregie, has described the Nigerian Education Loan Fund (NELFUND) as one of the most significant education policy initiatives since independence, but has expressed disappointment that more students are not taking advantage of it.
According to Omoregie, the programme has expanded access to higher education and eased the financial burden on students.
Omoregie said the programme’s borrowing terms were more favourable than those available under student-loan programmes in the U.S. and U.K.
He pointed to its application process, repayment grace period and earnings-based deductions.
“NELFUND is like manna from heaven,” Omoregie said in an interview in Benin City.
“It is one of the most significant public policy initiatives ever introduced into this country since independence,” he added.
His endorsement contrasted with his assessment of student interest, which he described as disappointing.
He argued that the programme’s terms made it closer to an education grant than a conventional loan.
“Maybe they should even use another word instead of calling it a loan,” he said, adding: “This is more like a grant.”
The financing nevertheless carries a repayment obligation.
Under the revised legal framework, the fund cannot begin recovery efforts until two years after a beneficiary completes the National Youth Service Corps (NYSC) programme.
Borrowers who remain unemployed and receive no income can seek an extension by submitting a sworn affidavit.
The vice-chancellor said the programme’s interest-free financing and deductions from earnings were designed to prevent repayment from placing excessive pressure on graduates.
His comparison with the U.S. and U.K. reflected his assessment of those provisions, rather than a detailed comparison of the countries’ different lending arrangements.
He credited President Bola Tinubu with signing the initial student-loan legislation and supporting a replacement after operational shortcomings emerged.
Tinubu signed the first law in June 2023 and the revised legislation on April 3, 2024.
Omoregie said the revised arrangement better accommodated the financial circumstances of students and those supporting their education.
He predicted that its structure could eventually attract interest from other countries looking at ways to finance higher education.
