Nigerian students are increasingly expressing concerns over the looming challenge of repaying government-issued student loans, especially in light of the country’s growing job shortage.
The government’s introduction of the Nigerian Educational Loan Fund (NELFUND) was initially seen as a beacon of hope for many students, offering loans to cover tuition fees and other academic expenses.
However, this financial assistance is now accompanied by a heavy burden of uncertainty, as students worry about how they will fulfill their repayment obligations after graduation, given the country’s economic challenges.
With Nigeria’s unemployment rate escalating and job opportunities for graduates remaining scarce, students who once relied on NELFUND to ease their educational burdens are now faced with the harsh reality of a job market that is unable to absorb the growing number of qualified graduates.
The introduction of the loan system, which was meant to promote higher education accessibility, now raises serious concerns about its long-term viability.
As more students sign up for NELFUND, the apprehension surrounding repayment grows. There is increasing skepticism about how graduates will repay their loans without secure job prospects or sufficient income.
The president of the Students Union Government (SUG) at the University of Abuja, Comrade Bashir Abdullahi Muhammed, voiced his concern, noting that many students are hesitant to apply for loans due to the uncertainty of their futures.
He pointed out that the government has failed to create an environment conducive to job creation, further complicating the repayment process.
“What are the opportunities there? If you finish school, what are the available options that you have? What are the jobs? What can I do? You have millions of dollars left after school. What can you take from it?
“I can use it for one day. Are you going to forever remain in debt?” he asked.
Similarly, the chairperson of the Non-Academic Staff Union (NASU), Sadiya I. Hassan, emphasised that imposing loans on students without providing the means to repay them is a flawed system.
She criticised the government’s approach, noting that even more developed countries with better economic conditions are moving away from student loans.
“Then in Nigeria, they don’t want you to graduate and get a job. So how do students pay back? You end up in jail?” she said, reflecting the growing discontent with the system.”
Cletus, a 400-level student at the Federal University of Agriculture in Makurdi, who recently received his N20,000 upkeep fee and loan, also expressed his reservations.
While he commended the government for offering the loan, he acknowledged the difficulty of repayment in a harsh economic environment with few job opportunities.
“I would want the government to diversify alternatives for students who get their loans, offering programs and jobs that would facilitate repayment. If not, I’m not sure most of the students jubilating now may have issues when it’s time to pay,” he said.
Cletus also pointed out the stark reality of low-paying jobs, where salaries in some organisations barely cover living expenses.
“Right now, some organisations still pay N40k-N50k salaries. How do you expect someone who earns N50k or even N100k to repay a loan when their monthly transportation costs are over N50,000?” he asked
