Professor Edoba Omoregie SAN, Vice-Chancellor of the University of Benin, described the Nigerian Education Loan Fund as superior to student loan systems in the United States and the United Kingdom.
He made the remarks while assessing the scheme. Omoregie called NELFUND one of the most significant public policy initiatives in Nigeria since independence.
Omoregie stated that NELFUND stood out through its application process, a moratorium before repayment starts, and the percentage of income deducted during repayment. He added that the scheme almost functioned like an education grant.
“NELFUND is like manna from heaven. It is one of the most significant public policy initiatives ever introduced into this country since independence. I have to commend President Bola Tinubu for signing the NELFUND bill,” he said.
He further explained that an earlier version developed under former President Muhammadu Buhari contained operational defects. President Tinubu signed it into law, then repealed it and introduced a revised version in early 2024.
Omoregie, who served on the technical team that reviewed the initial bill, noted that several provisions nearly diluted its core value. “They were talking about guarantees that people had to give when they take the facility. They even limited the amount and there was nothing like upkeep. President Tinubu didn’t think it was good enough and he had to bring a new version,” he said.
He pointed out that the interest-free nature set NELFUND apart. “I am sure even from outside the country now they will come and study sooner than later because unlike many of the student loans that you have in America, UK and all that which makes them skeptical, this one is an interest free loan,” Omoregie stated.
He suggested the scheme resembled a grant more than a conventional loan because of the moratorium and income-based repayment. However, he expressed disappointment at the low level of interest shown so far in accessing the fund.
