The Academic Staff Union of Universities (ASUU) has criticized the Nigeria Education Loan Fund (NELFUND) scheme introduced by the Federal Government, arguing that the programme is not a sustainable solution to the challenges facing higher education in the country.

Speaking on Friday, ASUU President, Prof. Emmanuel Osodeke, said while the idea of supporting indigent students is commendable, the student loan model being implemented under NELFUND could worsen inequality and push students into unnecessary debt burdens.

According to Osodeke, the government should instead focus on establishing a comprehensive grant system that provides direct support to public universities and their students, rather than introducing what he described as a “commercial approach” to education funding.

“Education should not be turned into a debt trap for young Nigerians. What we need are university grants, not loans.

The student loan scheme, as structured, is neither realistic nor sustainable in a country where graduate unemployment is very high,” Osodeke stated.

He noted that the major problems confronting Nigerian universities including underfunding, poor infrastructure, inadequate staff welfare, and outdated research facilities require long-term investment from the government, not credit schemes that shift the financial burden to students.

The ASUU president also expressed doubts about the fairness and transparency of the NELFUND process, warning that corruption, bureaucracy, and poor data management could limit access for genuinely indigent students.

ASUU has repeatedly urged the Federal Government to revive the Education Bank and scholarship systems, strengthen public funding for universities, and implement the agreements reached with the union to improve the quality of tertiary education.

The NELFUND scheme, launched earlier this year under the Student Loans (Access to Higher Education) Act, is designed to provide interest-free loans to Nigerian students in public tertiary institutions to cover tuition and related expenses.

The government says the initiative will ensure that no qualified student is denied education due to financial hardship.

However, ASUU insists that grants and institutional funding remain the best approach to guarantee equitable access and maintain academic standards across the country’s universities.