The Presidency has clarified that no beneficiary of the Nigeria Education Loan Fund (NELFUND) has been asked to start repaying their student loan, urging Nigerians to ignore viral claims suggesting otherwise.
Dada Olusegun, Special Assistant to President Bola Tinubu on Social Media, made this known in a statement shared on his official X (formerly Twitter) account on Saturday.
According to him, the loan scheme includes a two-year moratorium after completion of the National Youth Service Corps (NYSC), meaning repayment is not expected to begin anytime soon. Dada also shared a video of the Managing Director of NELFUND, Mr Akintunde Sawyerr, who described the repayment structure as simple, transparent and fair.
“As it stands, the scheme will be two years old in March 2026 from when the first applications were made, and none of the beneficiaries has reached the repayment stage” – Dada
Sawyerr explained that under the scheme, repayment responsibility largely rests on employers, not the individual graduates, except in cases where beneficiaries are self-employed. He added that a system is already in place to ensure compliance, especially for employers who may attempt to avoid their obligations.
Addressing fears that loan beneficiaries could face travel restrictions, the NELFUND boss dismissed such claims, saying the scheme does not restrict movement or career choices.
Sawyerr explained that the two-year window after NYSC was deliberately built into the programme to give young graduates time to stabilise.
He added that repayment only begins in the third year, at a rate of 10 per cent of the beneficiary’s income, with deductions handled by employers.
“We have a global standing instruction system to recover funds from employers who default. During NYSC, many people are not in a position to look for full-time jobs. The two years after that allow beneficiaries to find work, settle down, rent a house, even start a family. We are not chasing graduates around for repayment. Our engagement is with employers. Unless someone is self-employed, we don’t go after the individual” – Sawyerr
Sawyerr stressed that taking a NELFUND loan does not in any way tie beneficiaries to the government and that people are free to travel, work, and build their careers, the only expectation is that when they earn, they contribute back so others can benefit.
