Nigeria's student loans agency, University of Benin deny circular asking students to start repaying education loans
IN SHORT: Both the University of Benin and the Nigerian government agency Nelfund have denied sending any notice asking student beneficiaries to repay their loans.
The Nigeria Education Loan Fund (Nelfund) is a government initiative that provides interest-free loans to eligible students.
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Repayment starts two years after the National Youth Service Corps, giving students time to save. In this context, an online circular telling Nelfund loan beneficiaries to repay their loans has caused alarm.
The circular, dated 23 January 2026, appears to be from the University of Benin and has the deadline: "Update on Procedure for NELFUND Loan Subscribers to Repay Their Loan."
It says that after paying, students must submit proof, then enter their personal and payment details online.
One post featuring the circular reads: "This so-called Student Loan is a scam wrapped in grammar. How do you give a student a loan because they can't afford school fees, then turn around to demand repayment while they're still in school or barely months after?"
Other versions of the claim appear to be aimed at Nigerian president Bola Tinubu's administration for "cruelty" and punishing those who can't afford university education.
But is the circular genuine? We investigated.
'False and misleading'
The first red flag is that there is no instruction on Nelfund's official social media accounts for University of Benin students to repay their loans. Nelfund posts monthly updates on student loan disbursements on its X page.
Africa Check also found no notice on the University of Benin's website or on its official social media accounts instructing Nelfund students to repay their loans.
On 24 January, Nelfund issued a public disclaimer, distancing itself from the claim.
"The Nigeria Education Loan Fund (NELFUND) has noted with concern reports circulating in the media and on social platforms alleging that beneficiaries of the NELFUND student loan scheme have been directed to commence repayment. Nelfund wishes to categorically state that the reports are false, misleading and unfounded," the disclaimer reads.
The University of Benin also debunked the circular.
"The University wishes to categorically state that the said circular is fake and did not emanate from any authorised source," its statement said.
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The circular doing the rounds on social media is fake and should be ignored.
