The Federal Government has summoned Vice Chancellors of some schools and the Managing Director of Nigeria Education Loan Fund (NELFund) to discuss the diversion of funds meant for the student loan scheme.
A recent report claimed that about 51 schools had made illegal deductions from student loans under NELFund, prompting the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to launch a comprehensive investigation into the alleged discrepancies.
Worried about the allegations, the Federal Ministry of Education said it “is convening an urgent meeting on May 6, 2025, with the Vice Chancellors of the affected universities and the Managing Director of NELFund.”
“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 ministry said in a statement by its Director, Press and Public Relations, Boriowo Folasade.
She quoted the Minister of Education, Olatunji Alausa, as having described the claims as “very disturbing” and a potential violation 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 said.
To further drive transparency in the student loan scheme process, the Ministry said it will, through a partnership with the Athena Centre, launch a compliance-tracking initiative, including a countdown webpage to monitor university transparency.
It also plans to introduce an Annual University Transparency Index and provide technical assistance to institutions.
Additionally, a training programme will be held 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, providing interest-free loans to students in tertiary institutions across Nigeria.
As of April 2025, the fund has disbursed a total of N53.8 billion, the institutional fee paid is N30.1 billion, while the upkeep allowance is approximately N23.6 billion.
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