The Nigerian Federal Government has summoned university officials and the head of NELFund following reports of alleged Nigeria student loan fraud involving illegal deductions
[dropcap]T[/dropcap]he Nigerian Federal Government has summoned Vice Chancellors from several universities and the Managing Director of the Nigeria Education Loan Fund (NELFund) to address allegations of misappropriated funds intended for the student loan scheme.
Also read: ICPC launches comprehensive probe into NELFUND disbursement discrepancies
These actions follow a recent report which alleged that approximately 51 universities had made unlawful deductions from student loans provided by NELFund.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has initiated a thorough investigation into these alleged discrepancies.
The Federal Ministry of Education has expressed its concern over the allegations and announced that it “is convening an urgent meeting on May 6, 2025, with the Vice Chancellors of the affected universities and the Managing Director of NELFund.”
According to a statement released by the Ministry’s Director of Press and Public Relations, Boriowo Folasade, “The meeting will aim to thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.”
The Minister of Education, Olatunji Alausa, was quoted as describing the claims as “very disturbing” and a potential breach of public trust.
“If proven true, such actions would constitute a gross violation of public trust and a betrayal of the government’s commitment to equitable access to education,” the Minister stated.
To further promote transparency in the student loan scheme process, the Ministry announced a partnership with the Athena Centre to launch a compliance-tracking initiative. This initiative will include the establishment of a countdown webpage to monitor university transparency.
Additionally, the Ministry plans to introduce an Annual University Transparency Index and provide technical assistance to institutions.
A training programme will also be organised for university Bursars and ICT Heads to support the creation and maintenance of an open-portal initiative.
The NELFUND programme was officially launched on May 24, 2024, with the aim of providing interest-free loans to students enrolled in tertiary institutions across Nigeria.
Also read: [FULL LIST] Student loan: UNILAG, OAU, others receive N2.9tn from NELFUND
As of April 2025, the fund has disbursed a total of N53.8 billion, with N30.1 billion allocated to institutional fees and approximately N23.6 billion provided as upkeep allowance for students.
