By John Umeh
The Nigerian Education Loan Fund (NELFUND) has raised the alarm over an alarming trend emerging in the wake of the newly introduced student loan program — a 900% increase in tuition and school fees across several tertiary institutions. According to the agency, 10 federal and state universities have dramatically hiked their fees from as low as ₦200,000 to as high as ₦2 million, capitalizing on the availability of government-backed student loans.
NELFUND expressed deep concern that some institutions are exploiting the loan initiative as a justification to implement excessive fee hikes, placing an even greater financial burden on students and their families.
“The essence of the student loan program is to expand access to education, not to encourage profiteering by institutions,” a NELFUND spokesperson said. “We have identified at least 10 universities where fees have risen astronomically — in some cases, by up to 900% — within a short time frame.”
The student loan scheme, introduced under the Students Loans (Access to Higher Education) Act, was launched to help indigent students cover the cost of tertiary education without the immediate financial strain. However, just weeks into its implementation, concerns are mounting that the policy may be fueling unintended consequences by removing cost restraint from public institutions.
Breakdown of Fee Hikes
NELFUND, though withholding the names of the affected universities pending further investigation, confirmed that in many of these schools, average tuition has skyrocketed from ₦150,000–₦200,000 to over ₦1.5 million–₦2 million, especially in medical, engineering, and postgraduate programs.
“This kind of increase is not only exploitative but defeats the spirit of the loan scheme,” the agency noted.
Public Reaction and National Outcry
The revelation has sparked widespread outrage among students, parents, civil society groups, and education stakeholders. The National Association of Nigerian Students (NANS) condemned the fee hikes, warning that they could render the loan scheme ineffective and worsen inequality in access to education.
Parents have also voiced concern that even with loans available, accumulating large debts at a young age could trap students in long-term financial hardship.
Call for Regulation and Oversight
In response, NELFUND is urging the Federal Ministry of Education and the National Universities Commission (NUC) to step in and regulate tuition policies, ensuring that institutions do not take advantage of government interventions meant to support students.
Education experts are now calling for a clear tuition policy framework that links fee adjustments to inflation and budgetary realities rather than unchecked administrative discretion.
“The government must ensure that the student loan program is not weaponized against the very students it was meant to help,” said education policy analyst Dr. Adaobi Chukwu.
Next Steps
NELFUND has pledged to work closely with lawmakers and regulatory bodies to review the loan framework, introduce fee monitoring mechanisms, and possibly tie loan approvals to reasonable tuition thresholds.
As the student loan scheme enters its critical rollout phase, all eyes are now on the federal government to act swiftly and decisively to preserve both the integrity of the program and the accessibility of tertiary education for all Nigerians.
