The Vice-Chancellor of the University of Benin, Prof. Edoba Omoregie (SAN), has described the Nigerian Education Loan Fund as one of the most significant public policy initiatives introduced in Nigeria since independence.
Omoregie said the scheme was superior to similar student-loan programmes in countries such as the United States and the United Kingdom, but expressed concern over the low level of interest in accessing the fund.
He said NELFUND was unique because of its simplified application process, the moratorium before repayment begins and the modest percentage of income deducted from beneficiaries after they secure employment.
According to him, the scheme is more like an education grant than a conventional loan.
He commended President Bola Tinubu for signing the initial student-loan law introduced under former President Muhammadu Buhari before repealing it and sponsoring a new version through an executive bill.
Omoregie said the revised legislation addressed several shortcomings in the earlier law and made the scheme more accessible to students and their sponsors.
He said, “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.
“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.”
Omoregie, who said he was part of the technical team that reviewed the initial version, explained that some provisions had been removed following concerns raised by the former president, thereby weakening the bill.
He said the earlier version required beneficiaries to provide guarantors, limited the amount they could access and did not include provisions for upkeep allowances.
“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.
“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 in the bulk
“Rather, they would just take just a small portion of your emolument and everything will work out in such a way that you not be burning out.”
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