ASUU Criticizes Federal Government’s Education Loan Policy, Calls for Grants Instead of Debt-Based Funding

The Academic Staff Union of Universities (ASUU) has strongly criticized the Federal Government’s education funding approach through the Nigerian Education Loan Fund (NELFUND), arguing that it treats education as a profit-oriented enterprise rather than a social investment essential to national development.

ASUU President, Prof. Chris Piwuna, made this known during an interview on Channels Television’s The Morning Brief on Thursday, where he discussed the government’s insistence on offering loans instead of grants to students and universities amid soaring tuition fees across Nigerian institutions.

ASUU: Education Is Not a Business

According to Prof. Piwuna, the Federal Government’s loan-driven funding framework reflects a commercial mindset that undermines the social and developmental purpose of education.

“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.

He explained that ASUU had earlier advised the government to consider providing grants directly to universities rather than burdening students with repayable loans. However, the government went ahead with the NELFUND structure, a decision the union disagrees with but hopes will not fail.

“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 added.

Low Student Participation Reflects Fear and Distrust

Prof. Piwuna raised concerns about the low participation rate in the NELFUND scheme, describing it as a reflection of students’ fear of debt and lack of trust in government education policies.

He cited statistics showing that only about 300,000 to 400,000 students have applied for the loan scheme out of over 2 million undergraduates in Nigerian universities.

“Is that to say that 1.6 or 1.7 million students in Nigeria have a means of supporting themselves and do not need NELFUND loans? Certainly not,”
Piwuna stated.

He stressed that many students are reluctant to take loans due to uncertainty about repayment terms and the harsh economic conditions in the country.

“Students are afraid of how they will repay these loans. They are not happy that their education cannot be supported by the government unless they take a loan,”
he said.

ASUU Rejects NELFUND Board Membership

Prof. Piwuna also revealed that ASUU declined an offer to serve on the NELFUND governing board, maintaining that the union prefers to stay independent and free from potential political influence.

“We are not part of NELFUND. We have turned down their offer to make us board members,”
he confirmed.

Despite rejecting the invitation, ASUU expressed hope that the loan initiative succeeds, as it ultimately affects the future of Nigerian students.

“We hope it succeeds. We pray it succeeds because they say it is in the interest of students and their future,”
Piwuna added.

Tuition Fees Skyrocketing Across Universities

Speaking on the recent surge in tuition and service charges across federal and state universities, Prof. Piwuna described the situation as alarming, with some institutions increasing fees by over 1,000 percent.

He noted that while universities justify the increments with rising costs, there is an urgent need for oversight and harmonization from the Federal Ministry of Education to prevent inequality.

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

He added that unregulated tuition fees could lead to further marginalization of low-income students, widening the gap between rich and poor households in accessing higher education.

Grants, Not Loans: ASUU’s Preferred Solution

ASUU continues to advocate for direct government grants to universities as a sustainable way to address funding challenges while maintaining fairness and accessibility.

Prof. Piwuna suggested a categorised funding model, where universities are grouped by generation and specialization, ensuring each receives equitable support.

“If you decide that for first-generation universities, this is what you do. Second-generation universities, this is what you give them. Third-generation and specialized universities, this is what you give them — it harmonises everything,”
he explained.

The ASUU president reiterated that education should be viewed as a public good and national investment, not a private commodity driven by profit motives.

“What the universities are doing with increasing charges is something that needs to be controlled. Education must remain accessible and affordable if Nigeria wants true development,”
he emphasized.

ASUU: Not Against Government, But For Better Policy

Prof. Piwuna clarified that ASUU is not opposed to government initiatives but seeks a policy direction that ensures sustainability, equality, and long-term national benefit.

“We are not against government policies. We only want them to adopt the right approach. We want every education initiative to succeed, but it must be one that prioritizes the interest of students and the integrity of our universities,”
he concluded.

Summary

ASUU’s position highlights a growing national debate on the effectiveness of the NELFUND loan scheme and the need for education funding reform. While the Federal Government views NELFUND as a solution to funding gaps, ASUU insists that grant-based models remain the best path toward equitable and sustainable education in Nigeria.

As rising tuition continues to strain families, the question remains whether the loan-driven model will bridge or widen the inequality gap in access to higher education.