Senator Osita Izunaso has called for an amendment to the Nigerian Education Loan Fund (NELFUND) Act to extend the repayment period for student loans from two years to five years, saying the move would make the scheme more realistic and sustainable for beneficiaries.

Speaking at a stakeholders' engagement on the student loan programme in Abuja, the senator argued that the current repayment timeline does not adequately reflect the economic realities facing many Nigerian graduates, particularly the challenges of securing employment after completing their studies.

According to Izunaso, extending the repayment period would give beneficiaries sufficient time to establish themselves financially before beginning loan repayments, thereby reducing the risk of defaults and strengthening the long-term viability of the scheme.

The lawmaker described NELFUND as a transformative initiative aimed at expanding access to higher education for Nigerians, but stressed that continuous reforms would be necessary to ensure its success.

He noted that many graduates struggle to find stable employment within two years of graduation, making the existing repayment structure difficult for some beneficiaries.

In addition to advocating a longer repayment period, Izunaso called for a review of the monthly upkeep allowance provided under the programme. He said the current stipend may no longer be sufficient given rising living costs and inflationary pressures affecting students across the country.

The senator also highlighted accommodation as a major challenge facing tertiary institution students, urging policymakers to consider additional support measures that would ease the financial burden on beneficiaries.

Furthermore, he appealed to state governments and private-sector organisations to contribute to the sustainability of the education loan fund. According to him, broader stakeholder participation would help strengthen the scheme and ensure that more students can benefit from it in the future.

Izunaso also recommended stronger collaboration between NELFUND and agencies responsible for employment generation, arguing that linking graduates to job opportunities would improve repayment rates and enhance the overall impact of the programme.

The Nigerian Education Loan Fund was established to provide interest-free loans to eligible students in public tertiary institutions, with the goal of removing financial barriers to higher education.

Since its implementation, the scheme has attracted significant interest from students nationwide and is regarded as one of the Federal Government's flagship education initiatives.

The senator's proposal is expected to fuel ongoing discussions within the National Assembly and among education stakeholders on ways to improve the student loan framework while ensuring its long-term sustainability and effectiveness.