Group Knocks Peter Obi Over Student Loan Criticism

Group Knocks Peter Obi Over Student Loan Criticism

JOEL OLADELE, Abuja

The Social Advocacy Front (SAF) has criticised former Labour Party presidential candidate, Peter Obi, over his comments describing the Federal Government’s student loan scheme as wasteful.

In a statement signed by its Chairman, Tahir Ibrahim Tahir, and Secretary, Shehu Attah, the group expressed disappointment at Obi’s remarks on the Nigerian Education Loan Fund (NELFUND), saying they reflected flawed thinking and a lack of empathy.

“It is deeply concerning and disappointing that Mr. Peter Obi, the presidential candidate of the Labour Party in the 2023 general elections, would choose to disparage such a laudable and life-changing initiative as the Nigerian Education Loan Fund (NELFUND),” the statement said.

“His comments, which appear unpatriotic and partisan, undermine a scheme that has brought measurable relief and hope to hundreds of thousands of Nigerian students and their families.”

The group explained that NELFUND was established to implement the Nigeria Student Loan Scheme signed into law by President Bola Ahmed Tinubu in April 2024.

“For the avoidance of doubt, NELFUND was established to implement the Nigeria Student Loan Scheme, signed into law by President Bola Ahmed Tinubu in April 2024,” SAF stated.

According to the group, the Fund provides interest-free loans to students in public universities, polytechnics and colleges of education to cover tuition and essential living expenses. The scheme, which commenced operations in May 2024, is designed to remove financial barriers to tertiary education, especially for students from low-income backgrounds.

It added that under the programme’s guidelines, beneficiaries are to begin repayment only after securing employment and completing the National Youth Service Corps (NYSC), with repayments capped at 10 per cent of income to reduce financial pressure on graduates.

SAF disclosed that NELFUND has so far disbursed ₦155 billion in tuition and upkeep support to over 780,000 students, while about 1.3 million tertiary students have applied nationwide. It said students from 262 institutions have already benefited from the scheme.

“Against this backdrop, it is troubling that a programme of such demonstrable value could be labelled ‘wasteful’ for political expediency,” the group said.

It urged Obi to reconsider his position. “We urge Mr. Obi to reassess his position, seek proper clarification on the structure and impact of the scheme, and refrain from further mischaracterisation of NELFUND,” the statement added.

The group also highlighted other education reforms under the Tinubu administration, including plans by the Federal Ministry of Education to implement Technical and Vocational Education and Training (TVET) nationwide. It said the initiative is aimed at equipping learners with practical skills to enhance employability and promote entrepreneurship in critical sectors.

“These initiatives represent some of the bold, innovative, and comprehensive education funding and skills-development reforms of the Renewed Hope Administration. They deserve commendation and constructive engagement, not unwarranted condemnation,” SAF stated.

The group reaffirmed its support for NELFUND, TVET and other education-focused reforms of the current administration.