The Vice-Chancellor of the University of Benin (UNIBEN), Professor Edoba Omoregie (SAN), has described the Nigerian Education Loan Fund (NELFUND) as one of the most significant developments in Nigeria’s education sector, saying its model offers better conditions than student loan schemes operated in countries such as the United States and the United Kingdom.
Omoregie, who spoke on Monday, however, expressed disappointment over the level of interest shown by students in accessing the fund.
He said NELFUND stood out because of its flexible application process, provision for a moratorium before repayment begins and the limited percentage of beneficiaries’ earnings deducted when they start repaying the loans.
According to him, the scheme is structured in such a way that it almost resembles a grant rather than a conventional loan.
The UNIBEN vice-chancellor commended President Bola Tinubu for signing the initial legislation establishing the scheme into law and subsequently repealing it to introduce a revised version designed to address operational shortcomings and make the programme more accessible to students and their sponsors.
“NELFUND is like manna from heaven that is the way I would describe it. It is one of the most significant public policy initiatives ever introduced into this country since independence. I have to commend President Ahmed Tinubu for what he has done.
“He signed the NELFUND bill, there was an initial version which was developed during the time of President Buhari, but it was never signed into law, to the credit of President Tinubu, he signed the first one into law and then when he saw that there were some operational defects, he decided to repeal and then approach the parliament to enact a new one early 2024,” he said.
Omoregie disclosed that he was among the technical team involved in reviewing the original legislation, which he said had provisions that could have undermined the scheme’s objectives.
He explained that the initial version contained restrictive conditions, including requirements for guarantors, limits on the amount beneficiaries could access and the exclusion of provisions for students’ upkeep.
According to him, the Tinubu administration considered the initial framework inadequate and introduced a revised version to make the scheme more beneficial to students.
“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. Maybe they should even use another word instead of calling it a loan.
“This is more like a grant, there is a moratorium that until you start working, nobody is going to bother you and when you start working nobody is going to ask you to pay with the bulk, rather they would just take just a minute portion of your emolument, everything will work out in such a way that you not be burning out,” he said.
