Nelfund: Nigeria Student Loan Act 2024 Has No Life Imprisonment

• A fabricated newspaper graphic falsely claimed President Bola Tinubu announced life imprisonment for student loan defaulters.
• The Nigerian Education Loan Fund (Nelfund) officially debunked this claim as "fake news" on September 6, 2026.
• The Student Loan (Access to Higher Education) Act 2024 establishes an income-based repayment system, not life imprisonment for default.
• Beneficiaries begin repaying their interest-free loans after completing mandatory national service and securing employment, with 10% deducted from their salaries.
• The misinformation risks deterring eligible students from accessing vital educational funding provided by the Nigeria Student Loan Act 2024.

The Student Loan (Access to Higher Education) Act 2024, which governs the scheme, explicitly outlines an income-based repayment system and contains no provision whatsoever for life imprisonment as a penalty for defaulting on loans.

A fabricated newspaper front page recently circulated widely online, falsely asserting that Nigerian President Bola Tinubu had declared life imprisonment for students who fail to repay their education loans after graduation. This misleading graphic, which appeared to be from a publication named "The Daily Tribune," was shared across various digital platforms, causing significant concern among the public and potential beneficiaries of the student loan scheme.

The spurious headline specifically claimed, "Tinubu: All students who fail to repay their loans after graduation will go to jail for life imprisonment." This alarming statement was quickly identified as false, prompting official bodies to issue clarifications to counter the misinformation.

Contrary to the widely circulated fake news, the Student Loan (Access to Higher Education) Act 2024, which governs the scheme, explicitly outlines an income-based repayment system and contains no provision whatsoever for life imprisonment as a penalty for defaulting on loans. The Nigerian Education Loan Fund (Nelfund), the body responsible for administering the scheme, has unequivocally dismissed the claim as false, emphasizing that the legal framework does not support such extreme punitive measures.

Under the legitimate provisions of the Act, eligible students enrolled in public tertiary institutions can access interest-free loans to finance their education. Repayment for these loans commences only after beneficiaries have completed Nigeria's mandatory one-year National Youth Service Corps programme and successfully secured employment. Nelfund then facilitates repayment through a deduction of 10% from their salaries, ensuring a manageable and structured approach to loan recovery.

The Nigerian Education Loan Fund (Nelfund) took decisive action to address the misinformation, officially dismissing the circulating front page as "fake news" on its official X account on September 6, 2026. Nelfund further reinforced its stance by sharing a copy of the fabricated front page, prominently stamped with the word "FAKE," to visually underscore its inauthenticity.

Investigations revealed no credible evidence of a Nigerian newspaper operating under the name "The Daily Tribune," from which the fake front page purportedly originated. This lack of an authentic source, coupled with corroborating reports from several credible local news outlets, confirmed that the graphic was a fabrication and did not emanate from any recognized governmental or journalistic entity.

The propagation of false claims regarding severe penalties, such as the debunked student loan life imprisonment, carries significant negative implications. Such misinformation has the potential to generate unnecessary fear among prospective applicants and could actively discourage eligible students from applying for the vital educational loans provided under the Nigeria Student Loan Act 2024.

Accurate understanding of the Student Loan (Access to Higher Education) Act 2024 and its actual repayment penalties is essential to ensure that the scheme achieves its objective of providing financial support for higher education without undue panic or deterrence. Lawyers and compliance officers, in particular, must be aware of these facts to provide sound advice and counter the spread of disinformation effectively.

Lawyers and compliance officers should be aware of the actual provisions of the Student Loan (Access to Higher Education) Act 2024 regarding default penalties, clarifying that life imprisonment is not prescribed. This is crucial for providing accurate advice to clients and beneficiaries, countering misinformation that could deter eligible students or create undue panic.

Source: Original reporting via Africa Check