NELFUND has debunked a viral claim that President Bola Tinubu has ordered life imprisonment for Nigerian students who fail to repay their education loans after graduation.
The Nigerian Education Loan Fund described the claim as fake news, after a doctored newspaper front page announcing the alleged punishment began circulating online.
The fabricated publication, presented as the front page of The Daily Tribune and dated Thursday, May 27, 2027, carried the alarming headline: “Tinubu: All students who fail to repay their loan after graduation will go to jail for life.”
But NELFUND moved quickly to kill the report.
In a post on its official X account on Sunday, the Fund shared the disputed image with a large red “FAKE” stamp across it, making it clear that neither the reported presidential directive nor the purported newspaper story was genuine.
The clarification comes amid repeated misinformation surrounding the Federal Government’s student-loan scheme.
NELFUND has previously warned students and members of the public against fabricated circulars and online claims concerning the programme, including false reports about suspended upkeep payments and allegations that beneficiaries must begin repaying their loans while still in school or immediately after graduation.
WHAT THE LAW REALLY SAYS
Far from imposing life imprisonment on loan defaulters, the governing Students Loans (Access to Higher Education) Act, 2024 sets out a repayment system tied to employment and income.
Under Section 28 of the Act, a beneficiary who has secured employment becomes liable for repayment, but NELFUND cannot initiate enforcement action until two years after completion of the National Youth Service Corps (NYSC) programme or exemption from it.
Repayment is also not designed as a lump-sum demand.
The law provides for monthly deductions of not more than 10 per cent of a beneficiary’s gross income until the loan and applicable charges are cleared.
NELFUND’s own terms similarly state that beneficiaries who participated in NYSC are expected to begin repayment two years after completing the programme, while employed beneficiaries are required to update their employment details on the loan portal.
For self-employed beneficiaries, repayment is also linked to income.
And there is an important escape hatch for unemployed graduates: the law allows a beneficiary to seek an extension by providing a sworn statement confirming that they are not employed and have no income.
NO ‘JAIL FOR LIFE’ IN THE ACT
Interestingly, the 2024 Act does contain a criminal penalty — but it is not life imprisonment for failing to repay a student loan.
The law says a beneficiary who submits a false statement to obtain an extension of enforcement action can face imprisonment for up to three years if convicted.
The law also provides for loan forgiveness in certain circumstances, including death or acts of God that make repayment impossible, according to the Presidency’s explanation of the 2024 legislation.
NELFUND’s official portal describes the scheme as an interest-free loan, with repayment beginning two years after NYSC.
The scheme was established to give eligible Nigerian students access to interest-free financial support for higher education, including institutional fees and maintenance or upkeep allowances.
The 2024 law was signed by President Tinubu on April 3, 2024, replacing the earlier 2023 legislation and strengthening the framework for administering the student-loan programme.
For students and graduates worried by the viral message, the bottom line is simple: there is no provision in the current student-loan law imposing life imprisonment merely because a beneficiary failed to repay the loan.
The viral “life jail” headline is therefore another fake claim surrounding a programme that NELFUND has repeatedly had to defend against misinformation.
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