Nigerian graduates who benefit from the Federal Government’s student loan programme will generally be required to repay 10% of their monthly salaries once their repayment obligations become due.
The Nigerian Education Loan Fund (NELFUND) has explained that the deductions will be made through employers, rather than requiring every employed beneficiary to make manual payments.
The arrangement is part of the repayment framework for the interest-free loans provided to students in eligible public tertiary institutions.
According to the official NELFUND FAQ, employed beneficiaries will have 10% of their salaries deducted at source, while self-employed graduates will remit 10% of their monthly profits.
The policy means the amount repaid each month depends on the beneficiary’s earnings.
How does the 10% salary deduction work?
NELFUND’s loan terms state that beneficiaries must update their employment information when they secure jobs.
The fund requires employers to deduct the prescribed repayment amount from the salaries of beneficiaries whose loans have become due.
The money is then remitted towards the outstanding loan balance.
This arrangement is intended to create a regular repayment system.
However, the obligation is not expected to begin immediately after graduation.
NELFUND generally provides a two-year grace period after completion of NYSC before repayment becomes due.
How much will graduates repay at different salary levels?
Under the stated 10% arrangement, the monthly repayment can be illustrated as follows:
| Monthly salary | Illustrative monthly repayment |
|---|---|
| ₦100,000 | ₦10,000 |
| ₦150,000 | ₦15,000 |
| ₦200,000 | ₦20,000 |
| ₦250,000 | ₦25,000 |
| ₦300,000 | ₦30,000 |
| ₦400,000 | ₦40,000 |
| ₦500,000 | ₦50,000 |
These figures are simple calculations based on 10% of the stated salary amounts.
They are not personalised repayment schedules.
The precise amount should be determined under the applicable loan agreement and statutory rules.
Is the deduction based on gross or net salary?
The 2024 Students Loans Act provides for monthly deductions not exceeding 10% of a beneficiary’s gross income.
The published FAQ uses the simpler description of 10% of salary.
This distinction matters because gross income is calculated before certain deductions, while take-home pay reflects deductions already made.
Beneficiaries should therefore review the terms governing their repayment and seek clarification where necessary.
The examples above use the listed salaries as the calculation base.
Who is responsible for deducting the money?
The fund says employers will deduct repayments at source.
This means a beneficiary’s employer plays an important role in the recovery process.
NELFUND’s managing director, Akintunde Sawyerr, has previously explained that employers are responsible for making and remitting the deductions.
According to a November 2025 report based on a News Agency of Nigeria interview, Sawyerr said the arrangement was designed to make repayment straightforward for beneficiaries.
The repayment framework therefore involves both the borrower and the employer.
What happens when a beneficiary changes jobs?
NELFUND requires beneficiaries to update their employment information.
Its implementation guidelines specify that borrowers changing employment should communicate their new employment details within 30 days of resuming with another employer.
This helps the fund maintain accurate repayment records.
A graduate who changes jobs should therefore not assume that the previous employer’s deductions automatically settle all reporting obligations.
The beneficiary remains responsible for ensuring that NELFUND has accurate information.
What if a graduate is self-employed?
The repayment structure is different for self-employed beneficiaries.
Instead of salary deductions by an employer, they are required to remit 10% of their monthly profits.
For example, a self-employed beneficiary recording ₦300,000 in monthly profit would ordinarily calculate ₦30,000 under the stated percentage.
Profit should not be confused with business turnover or total sales.
A business generating ₦500,000 in sales does not necessarily make ₦500,000 in profit.
The borrower should maintain reliable records and follow NELFUND’s reporting requirements.
Can beneficiaries repay more than 10%?
Yes.
The official FAQ states that beneficiaries may repay more than the statutory monthly amount.
The loan terms also permit early repayment in full or in part.
This means a graduate who has sufficient resources may choose to clear the debt sooner.
However, borrowers should verify their outstanding balances and use approved payment channels.
Does the loan attract interest?
No.
NELFUND describes the student loan as interest-free.
This means beneficiaries are not expected to pay conventional loan interest on the principal.
However, they remain responsible for repaying the amount borrowed.
For employed graduates, the key point is that repayment is linked to earnings, with the published framework providing for a 10% deduction once repayment becomes due.