Opinion: NELFUND: Relief or Catalyst for Hikes?

By: Oluseun FATOPE

The introduction of the Nigerian Education Loan Fund was heralded as a transformative and developmental initiative aimed at providing access to those who are financially burdened but wish to pursue tertiary education across the nation. It was designed to provide interest-free loans covering tuition and monthly stipends, making it seem like a beacon of hope for the less privileged. However, as the initiative unfolds, questions arise about its unintended consequences, particularly concerning the fee hikes in universities

NELFUND has been able to disburse over ₦20 billion in institutional fees and more than ₦12 billion for monthly stipends, even though not so consistent, benefiting approximately 192,906 students nationwide since its inception. Institutions like the University of Ibadan have received substantial funds, with ₦201 million allocated to cover fees for 1,370 students.

Students have expressed gratitude for the relief provided. According to The Guardian Nigeria, Dauda Shupkuk, a 300-level History and International Studies student at the University of Jos, described the loan as a “game changer” that alleviated financial stress for him and his family.

Concerns are emerging that access to loans is helping universities justify an increase in tuition fees. There have been a lot of updates describing the inconsiderate act of several universities “profiteering”, inflating their fees, and making even the privileged miserable. They may, however, lightly alter their narrative to justify the attempt to cart away the disbursed funds which, unfortunately, seems to already be the case.

At the University of Ibadan, students have complained about getting some loan amounts that do not seem to fully address their tuition fees. For example, a student known as Surprise Ayo received ₦113,850 but his tuition fees were over ₦142,000 which is quite confusing and raises fear about the adequacy of the loan offered.

In an attempt to curtail students’ dissatisfaction, the funds have been allocated, and as a first step, the universities are attempting to address the students’ issues. The University of Ibadan has been assuring students who had paid their fees before the loans were released that they will be refunded. Likewise, the University of Calabar has made some changes for students whose loan payments are were made late into the semester by allowing them registration for the new academic session with the promise to pay within a reasonable time.

Yet, some students have doubts about how the loan program might affect them in the future. They worry about piling up debt and fear that universities might raise fees because loans are available. It is important to note that while the loan helps now, the thought of always owing money and not knowing how much tuition will cost later cause a lot of stress for many borrowers.

As NELFUND grows, with over 280,000 students signed up and more schools joining, it’s tricky to balance giving financial help and keeping tuition costs low. Student groups, government offices, and others need to work together. They must make sure that the main goal of the loan does not end up putting more money pressure on students by accident while profit some dubious minds