Tinubu’s Student Loan Fund: Lifeline or Debt Trap for Nigerian Youth?

After signing the Student Loan Act in his first 14 days in office, the government launched the Nigerian Education Loan Fund to cover university fees and provide stipends. By April 2026, it had disbursed over ₦242 billion to more than 1.3 million students. At the same time, subsidies for public universities were cut. Institutions hiked fees by up to ten times, forcing students to borrow for costs that were once heavily subsidised. Borrowers must repay the full loan two years after NYSC. Outstanding balances bar graduates from accessing other credit, blocking business capital or mortgages. This scheme mirrors the US student debt crisis, where trillions in loans have trapped millions in poverty. Many fear this policy will saddle a generation of Nigerians with unsustainable debt.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.