The Nigerian Education Loan Fund (NELFUND) has issued a formal clarification stating that accessing its student loan scheme is voluntary, not a compulsory requirement for students in Nigerian tertiary institutions, following reports of some institutions mandating students to apply for the loan.

In a statement signed by Oseyemi Oluwatuyi, director of strategic communications at NELFUND, the agency said making the loan compulsory for all students, regardless of their financial circumstances, would contradict the scheme's purpose of removing financial barriers to higher education.

Why NELFUND Issued the Clarification

The clarification comes amid reports that at least one institution had attempted to make loan registration a condition for students to write examinations. NELFUND's statement followed reports that an Enugu college threatened to prevent students who refused to apply from writing examinations.

A memo dated October 6, 2026, signed by an Acting Registrar, had stated that it was compulsory for every student in NCE and Degree programmes to enroll and access the Nigeria Education Loan Fund, directing all fresh and continuing students to visit the office of the college's NELFUND Desk Officer to apply for the fund for the 2026/2027 academic session.

It was against this backdrop that NELFUND moved to set the record straight on how the scheme is meant to operate.

NELFUND's Official Position

The fund described the student loan scheme as a support mechanism rather than an obligation, adding that its objective was to promote equal access to education and ensure that financial constraints did not prevent eligible Nigerians from pursuing higher education.

"Making access to the loan compulsory for all students, regardless of their financial circumstances, would run contrary to the scheme's fundamental purpose," the Fund stated. "NELFUND's 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."

The Fund stressed that students who do not need financial assistance are under no obligation to apply.

A Reminder on Repayment Obligations

While reaffirming that the loan remains free of interest, NELFUND also reminded students that although the loans are interest-free, beneficiaries are required to repay them in accordance with the provisions of the Student Loans Act.

NELFUND therefore advised students to familiarise themselves with the terms and conditions of the scheme and make informed decisions before submitting their applications.

Call on Institutions and Student Leaders

NELFUND urged tertiary institutions, student leaders and other stakeholders to provide accurate information about the scheme and guide students who require financial support to continue their education.

This appears to be a direct response to cases where institutions or departmental officials may have mispresented or enforced the scheme as mandatory, potentially creating pressure for students who neither need nor want to take on loan repayment obligations.

What This Means for Students

Following this clarification, students across Nigerian tertiary institutions, FUTO inclusive, should take note of the following:

  • No institution can lawfully compel a student to apply for or collect a NELFUND loan as a precondition for registration, examinations, or academic progression.
  • Students who do not require financial assistance are under no obligation to apply for the scheme.
  • Students who choose to apply should carefully review the terms and repayment obligations under the Student Loans Act before proceeding, since the facility, though interest-free, must still be repaid.
  • Any department, faculty office, or institution found mandating loan registration as a condition for academic activities may be acting outside the scheme's intended framework, based on NELFUND's position.

Students are advised to make informed, independent decisions on whether to apply for the NELFUND loan, based solely on their genuine financial need, and to report any case of compulsion by their institution to appropriate student leadership or NELFUND directly via info@nelf.gov.ng.