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From Tony Osauzo, Benin
Vice-Chancellor of the University of Benin, Edoba Omoregie, has described the Nigerian Education Loan Fund (NELFUND) as one of the most significant interventions in the country’s education sector since independence, but expressed concern over the relatively low interest shown by students in accessing the scheme.
Omoregie, a Senior Advocate of Nigeria, said the interest-free loan programme offered Nigerian students more favourable conditions than comparable schemes in the United States and United Kingdom, particularly in its repayment provisions and protection for beneficiaries who had yet to secure employment.
Speaking in an interview, the vice-chancellor commended President Bola Tinubu for reviewing the original student loan legislation and introducing a framework he considered more responsive to the financial circumstances of students and their sponsors.
“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.
Omoregie explained that the original legislation contained restrictions that could have limited access, including guarantor requirements and limits on the amounts beneficiaries could obtain.
He said the subsequent review removed some of those obstacles and introduced provisions that made the scheme more accessible.
According to him, the revised arrangement allows students to benefit from interest-free loans, with repayment deferred until they secure employment.
He maintained that deductions after employment were structured to avoid imposing an excessive financial burden on beneficiaries.
“This is more like a grant, there is a moratorium that until you start working, nobody is going to bother you and when you start working nobody is going to ask you to pay with the bulk, rather they would just take just a minute portion of your emolument,” he said.
The vice-chancellor said the repayment structure distinguished the Nigerian scheme from student loan arrangements in some developed countries, where beneficiaries could face substantial debt obligations.
He disclosed that he participated in technical discussions surrounding the review of the earlier student loan legislation, explaining that the initial framework had undergone changes to address concerns raised during its development.
Omoregie, however, expressed dissatisfaction with what he described as the low level of student interest in the scheme, suggesting that more eligible students should take advantage of the available financing opportunities.
He maintained that the programme had the potential to reduce financial barriers to higher education and enable more Nigerians to complete their studies without placing excessive pressure on their families.
