The Academic Staff Union of Universities (ASUU) has criticised the Federal Government’s approach to funding higher education through the Nigerian Education Loan Fund (NELFUND), describing it as a policy that treats education as a profit-making venture rather than a social investment. ASUU President, Prof. Chris Piwuna, stated this on Thursday during an interview on Channels Television’s The Morning Brief, while reacting to the recent surge in tuition fees across Nigerian universities. He said the government’s insistence on providing loans instead of grants to universities reflects a commercial mindset that undermines the social 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,” Piwuna said. He noted that ASUU had advised the government to reconsider the loan structure but its suggestions were ignored. According to him, the union is concerned that the loan scheme, despite its intentions, is not addressing the financial needs of most students, as many are reluctant to apply due to fear of repayment burdens.

Piwuna revealed that only about 300,000 to 400,000 students out of over two million in Nigerian universities have applied for the NELFUND loan, a figure he said underscores students’ distrust in the scheme. “Students are afraid of how they will repay these loans. They are not happy that their education cannot be supported by government unless they take a loan,” he said. The ASUU president also disclosed that the union declined an invitation to serve on the NELFUND governing board, stressing that ASUU prefers to maintain its independence while wishing the programme success.

On the issue of rising tuition fees, Piwuna called for urgent harmonisation and oversight by the Ministry of Education to ensure fairness across institutions. He noted that some universities charge as low as ₦125,000 for Medicine, while others demand nearly ₦400,000 for the same course. “There’s a clear need for harmonisation if they truly want a fair system,” he said. Piwuna maintained that government grants to universities remain the best approach to funding tertiary education, as they ensure equity and stability in the system. He reiterated that ASUU is not opposed to government initiatives but insists that education must be treated as a social responsibility, not a commercial venture.