NIGERIA’S NELFUND BETTER THAN US, UK EDUCATION LOAN MODELS – UNIBEN VC

The Vice Chancellor of the University of Benin, Professor Edoba Omoregie, has praised the Nigerian Education Loan Fund, describing it as one of the country’s most significant education initiatives since independence.

Speaking in an interview on Monday, Omoregie argued that NELFUND offers more favourable terms than student loan schemes in the United States and the United Kingdom.

He highlighted its interest-free structure, the waiting period before repayment begins and the gradual deductions from beneficiaries’ earnings as key advantages.

According to him, these features ease the financial pressure on students and their families, making the scheme feel closer to a grant. However, NELFUND remains a loan that beneficiaries are expected to repay under its terms.

Despite his enthusiasm, the vice chancellor expressed disappointment with the level of interest shown in accessing the fund.

Omoregie also commended President Bola Tinubu for supporting changes to the student loan legislation. He said the initial version, developed during former President Muhammadu Buhari’s administration and signed into law by Tinubu, contained operational challenges that prompted a replacement law in early 2024.

The vice chancellor, who said he participated in the technical review of the earlier version, identified guarantor requirements, borrowing limits and the absence of upkeep support among its shortcomings.

He said the revised framework better addressed the needs of students and those financing their education.

Omoregie maintained that allowing beneficiaries time before repayment, followed by manageable deductions from their earnings, could help more Nigerians pursue higher education without immediate financial strain.