By Samuel Olusegun Precious
Following the recent controversy in an institution of higher learning, the Nigerian Education Loan Fund (NELFUND) has reiterated that the Federal Government’s student loan scheme is not compulsory for all students in tertiary institutions.
In a statement issued on Wednesday, October 21, 2026, in Abuja, the agency declared that the scheme is voluntary and should only be accessed by students who genuinely need financial assistance.
The statement signed by the Director of Strategic Communications, Mrs Oseyemi Oluwatuyi, explained that the loan was established to remove financial barriers to higher education and promote equal access to learning.
“The decision to apply for and access the loan should be based on an individual student’s financial circumstances and genuine need for assistance,” the Fund said in the statement.
NELFUND also stressed that students who are able to fund their education independently are under no obligation to apply. According to the agency, making the loan mandatory for all students would defeat its purpose.
“Making access to the loan compulsory for all students, regardless of their financial circumstances, would run contrary to the scheme’s fundamental purpose. Our objective is not to encourage every student to borrow, but to ensure that every eligible Nigerian student who genuinely needs financial assistance has the opportunity to access it,” it added.
The Fund reaffirmed that the loan is interest-free but must be repaid in accordance with the Student Loans Act. It also called on tertiary institutions, student bodies and stakeholders to disseminate accurate information and guide students properly.
