Former Vice President and presidential candidate of the African Democratic Congress, Atiku Abubakar, has promised to review the Nigerian Education Loan Fund, NELFUND, scheme and introduce debt forgiveness for qualifying Nigerian students if elected president.
Atiku’s position was disclosed by his Senior Special Assistant on Public Communication, Phrank Shaibu, in a statement issued on Tuesday in response to comments by President Bola Ahmed Tinubu on the Federal Government’s education and economic policies.
According to Shaibu, Atiku believes the current student loan scheme requires a review to ensure that it genuinely reduces the financial burden on Nigerian students rather than creating another long-term debt obligation for young graduates.
The former vice president also proposed that certain categories of students who are unable to repay their loans should be considered for debt forgiveness under a reformed NELFUND framework.
The proposal comes at a time when the Federal Government has continued to expand the student loan programme as part of its efforts to improve access to tertiary education.
NELFUND was established under the 2024 student loan legislation and began operations in 2024. The scheme provides financial assistance to eligible students in public tertiary institutions, covering institutional fees and, for qualified beneficiaries, monthly upkeep support.
Recent figures from NELFUND show the scale of the programme. The agency disclosed in August that it had disbursed more than N303 billion to about 850,000 Nigerian students, with beneficiaries receiving support for tuition and other approved educational expenses.
NELFUND has also reported further growth in the programme, with more than N322 billion reportedly disbursed through over 1.6 million student loan applications as of August 2026.
Under the existing arrangement, repayment of NELFUND loans is expected to begin two years after a beneficiary completes the National Youth Service Corps, NYSC, programme. The scheme is designed as an interest-free loan, with the official student portal stating that there are no hidden charges and that repayment begins two years after NYSC.
Atiku’s proposed debt forgiveness programme would therefore represent a significant change in the way student loans are managed if his proposal is eventually implemented.
The former vice president has repeatedly criticised aspects of the Tinubu administration’s economic policies, arguing that rising living costs have made it increasingly difficult for ordinary Nigerians to meet basic needs, including the cost of education.
His latest intervention came after President Tinubu criticised Atiku’s economic arguments in a post on X, prompting the former vice president’s media team to respond.
Shaibu described the President’s attempt to portray the NELFUND scheme as evidence that education had become more affordable under the current administration as misleading.
The Atiku camp argued that while providing loans could help students remain in school, loans alone do not necessarily make education affordable, particularly for graduates who may enter the labour market without stable employment or sufficient income to meet repayment obligations.
Atiku’s proposal for debt forgiveness is likely to generate further debate as political parties and presidential aspirants begin positioning themselves ahead of the 2027 general elections.
The proposal also comes against the backdrop of efforts by the Federal Government to strengthen NELFUND’s financial capacity. In August, the government announced plans to channel eligible recovered funds, unclaimed dividends and dormant account funds into NELFUND to support its growing obligations.
The Economic and Financial Crimes Commission also disclosed on Tuesday that N100 billion from funds recovered by the agency had been allocated to NELFUND since 2024, highlighting the increasing importance of alternative funding sources for the student loan programme.
With the cost of tertiary education remaining a major concern for many Nigerian families, the debate over whether students should receive loans, grants or outright financial assistance is expected to remain a major issue ahead of the 2027 elections.
For Atiku, the proposed review of NELFUND and possible debt forgiveness would form part of a broader education policy aimed at reducing the financial pressure on students and graduates.
However, the details of the proposed forgiveness programme, including who would qualify, the amount of debt that could be cancelled and how the policy would be funded, remain to be outlined.
The proposal is therefore likely to attract scrutiny from education stakeholders, students, economists and policymakers as political parties develop their education and economic plans for the 2027 presidential contest.
