Peter Obi Under Fire Over ‘Wasteful’ Student Loan Comments

A Nigerian advocacy group has hit back at former presidential candidate Peter Obi, describing his criticism of the government’s new student loan scheme as “disappointing” and “unpatriotic.” The Social Advocacy Front (SAF) issued a strongly worded statement on Monday, defending the Nigerian Education Loan Fund (NELFUND) against claims by the Labour Party leader that the initiative is a “wasteful venture.”

‘Measurable Relief’

The SAF, led by Chairman Tahir Ibrahim Tahir and Secretary Shehu Attah, argued that Mr. Obi’s remarks show a “lack of empathy” for students from low-income backgrounds. They contend that the scheme—signed into law by President Bola Tinubu in April 2024—has already become a lifeline for hundreds of thousands. The group released new figures to underscore the scale of the programme:

₦155bn ($100m+): Total disbursed in tuition and upkeep support so far.

780,000: Number of students who have already received funds.

1.3 million: Total applications received nationwide.

262: Number of tertiary institutions where students have benefited.

“It is troubling that a programme of such demonstrable value could be labelled ‘wasteful’ for political expediency,” the SAF statement said.

How the Scheme Works

To counter the narrative of the loan being a financial burden, the group highlighted the “humane” repayment terms designed to protect graduates:

Interest-Free: The loans do not accrue interest.

Delayed Start: Repayment only begins after the student completes their mandatory National Youth Service (NYSC) and secures employment.

Income Cap: Deductions are capped at 10% of the beneficiary’s monthly income to prevent financial strain.

Beyond the Classroom

The SAF also pointed to broader educational reforms, including the nationwide rollout of Technical and Vocational Education and Training (TVET). This programme aims to bridge the country’s skills gap in sectors like ICT, automotive technology, and construction. While Mr. Obi has frequently criticized the current administration’s spending priorities, the SAF urged him to “reassess his position” and seek clarification on the scheme’s impact before further “mischaracterising” it. The presidency has yet to officially respond to Mr. Obi’s specific comments, but supporters of the “Renewed Hope” agenda maintain that these reforms are essential for sustainable education funding in Africa’s most populous nation.