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Home Sectors Education

ASUU faults NELFUND scheme, says university grants better than student loans

Rosalia Ozibo by Rosalia Ozibo
October 10, 2025
in Education, Sectors
ASUU threatens nationwide strike over unresolved 2009 agreement with Federal Government 
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The Academic Staff Union of Universities (ASUU) has faulted the Federal Government’s approach to education funding through the Nigerian Education Loan Fund (NELFUND), describing it as a policy that treats education like a profit-making venture rather than a social investment.

The ASUU President, Prof. Chris Piwuna, stated this on Thursday during an interview on Channels Television’s The Morning Brief, while reacting to the rising tuition fees in Nigerian universities.

Speaking on the programme, Prof. Piwuna said the Federal Government’s insistence on providing loans instead of grants to universities reflects a commercial mindset that undermines the social purpose of education.

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“Our initial position has been that what they call loans should have been grants to universities. But over time, the government has seen education as a profit-making, a marketplace kind of thing,” he said.

According to him, ASUU had previously advised the government to reconsider the loan structure, but its suggestions were ignored.

“They have decided to run it through NELFUND. We have given them advice. They have the right to accept our advice or not. They have decided to go with it as a loan. We want it to succeed. We wish them the best,” he said.

Students afraid of taking loans 

Prof. Piwuna also questioned the effectiveness of the loan scheme, citing low student participation as an indicator that many are unwilling to take on debt.

“Government may be talking about the number of students that they have that have applied, the amount of money that they’ve paid. I think we have about a little over 2 million students in universities across the country. The last figure I saw was about 300 or 400,000 of those who have applied 

“Is that to say that 1.7million, 1.6 million students in Nigeria have a means of supporting themselves, and so they do not need NELFUND loan? That’s certainly not the case,” he stated.

He said this shows that most students fear the burden of repayment and feel neglected by a government that should directly support their education.

“The point is that students are themselves afraid of taking loans. Students are afraid of how they will repay these loans. Students are not happy that their education cannot be supported by the government unless they take a loan,” he noted

ASUU rejects NELFUND board offer 

Prof. Piwuna disclosed that ASUU declined an invitation to serve on NELFUND’s governing board, saying the union prefers to maintain its independence while still wishing the government’s programme success.

“We are not part of NELFUND. We have turned down their offer to make us board members in NELFUND. 

“All we can say to them is that we wish them well. We hope it succeeds. We pray it succeeds because they say it is in the interest of students and their future. 

“We want Nigerian students to have a great future. We want them to complete their studies. If that works for them through NELFUND, fine,” he stated.

Tuition fee harmonisation 

Prof. Piwuna stated the recent surge in tuition fees across state and federal universities, some of which have gone up by as much as 1,000%, adding that the increases need proper regulation and oversight from the Ministry of Education.

“What the universities are doing with increasing charges is something that needs to be controlled. They give reasons for what they want to charge. 

“You pay about N125,000 to study medicine in one federal university, while another federal university charges nearly N400,000 for the same course. There’s a clear need for harmonisation if they truly want a fair system,” he said

The ASUU president maintained that providing grants to universities would have been a better approach, as it ensures fairness and uniformity in the system.

“But we still maintain that grants would have been the best way to manage these increases that you are talking about.  

“Because if you decide that for first-generation universities, this is what you do. Second-generation universities, this is what you give them. 

“Third-generation, this is what you give them. Specialised universities, this is what you give them. It harmonises everything,” he said

Piwuna emphasized that ASUU is not opposed to government policies and wants its education initiatives to succeed.

Rosalia Ozibo

Rosalia Ozibo

Rosalia is a versatile journalist with a focus on technology and education. She has a talent for turning complex ideas into engaging stories, exploring how innovation and learning shape the future of people, business, and society. From tracking shifts in digital transformation and emerging tech to writing about developments in education policy and practice, her work bridges insight and accessibility. Known for sharp analysis and compelling storytelling, she continues to provide readers with perspectives that connect knowledge, opportunity, and the evolving world of work.

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