The Vice-Chancellor of the University of Benin (UNIBEN), Professor Edoba Omoregie, has described Nigeria’s student loan scheme as more favourable to students than comparable systems in the United States and the United Kingdom, citing its zero-interest structure and repayment arrangements.

Omoregie made the assessment in an interview with Vanguard on Monday, October 26, 2026, while discussing the Nigerian Education Loan Fund (NELFUND), the Federal Government’s initiative to help eligible students finance their tertiary education.

He also expressed concern about the level of interest students had shown in accessing the scheme.

VC praises interest-free loan structure

Omoregie described NELFUND as a significant education policy initiative, arguing that its terms could reduce the financial pressure associated with obtaining a university education.

He highlighted the absence of interest charges, the postponement of repayment and the provision for deductions from beneficiaries’ earnings once repayment obligations begin.

According to the vice-chancellor, these features make the Nigerian scheme different from student loan arrangements in countries such as the United States and the United Kingdom, where borrowers may face interest charges and substantial repayment obligations.

He also commended President Bola Tinubu for supporting the review of the original student loan legislation and the introduction of a revised framework in 2024.

Omoregie said the changes addressed concerns about the earlier arrangement, including guarantor requirements and restrictions on the amount students could access.

However, his assessment represents his opinion on the relative attractiveness of the schemes.

The available report does not provide a detailed comparative study of loan costs, eligibility requirements, repayment periods or outcomes across the three countries.

What NELFUND offers Nigerian students

According to NELFUND’s official guidance, the scheme provides eligible students with zero-interest loans to cover institutional charges and, where requested, upkeep expenses.

The fund pays approved institutional charges directly to the relevant institutions, while upkeep support is disbursed to beneficiaries in instalments.

Students must apply to access the facility, and the amount available depends on their eligible educational expenses.

The repayment framework also provides relief for beneficiaries who have not yet secured employment.

NELFUND’s published guidance states that repayment is due two years after completion of the National Youth Service Corps programme, subject to the applicable rules.

Employed beneficiaries are expected to repay through deductions from their earnings, while self-employed beneficiaries have separate repayment obligations.

The scheme is designed to reduce financial barriers to higher education, particularly for students who struggle to meet the costs of tuition and basic living expenses.

VC raises concern over student participation

Despite praising the scheme, Omoregie said he was dissatisfied with the level of interest shown by students in accessing the fund.

His comments highlight an important question for education authorities: whether eligible students understand the scheme, its application process and the obligations attached to borrowing.

NELFUND has emphasised that participation is voluntary and that students should apply when they genuinely need financial assistance.

The fund has also urged institutions and student leaders to provide accurate information about the programme.

Greater awareness could help students make informed decisions about whether to use the facility, while clear communication about repayment terms would be essential to maintaining confidence in the programme.

Access and accountability remain important
NELFUND forms part of the Federal Government’s efforts to expand access to tertiary education by helping students overcome financial difficulties.

Its long-term impact will depend on effective administration, timely disbursement, transparent eligibility procedures and students’ understanding of their repayment responsibilities.

While Omoregie believes Nigeria’s interest-free model offers advantages over arrangements in the United States and the United Kingdom, a comprehensive comparison would require evidence on the full costs, coverage, repayment performance and outcomes of each system.