The Nigerian Education Loan Fund (NELFUND) has denied allegations of mismanagement, following reports that student loan funds may have been diverted by some universities.
This comes as the Federal Ministry of Education summoned Vice Chancellors of affected institutions for a meeting scheduled for May 6, 2025.
The Ministry, reacting to a report published by The Guardian on April 29, said it was “deeply concerned” by claims that certain universities made unauthorized deductions from student loans disbursed through the NELFUND scheme.
Minister of Education, Dr. Marut Olatunji Alausa, described the allegations as “very disturbing and extremely concerning,” warning that “any unauthorized deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFUND was established.”
“Let me assure Nigerians that this matter will not be swept under the carpet,” the Minister added. “Anyone found culpable will face appropriate sanctions.”
The Ministry also announced new initiatives to improve transparency, including a compliance-tracking system, an Annual University Transparency Index, and mandatory training for bursars and ICT heads.
Meanwhile, in a detailed statement issued on Thursday, NELFUND refuted claims of misappropriation following an earlier disclosure by the Independent Corrupt Practices and Other Related Offences Commission (ICPC). The commission had alleged that of the ₦100 billion released for student loans, only ₦28.8 billion was disbursed, with ₦71.2 billion unaccounted for, prompting an investigation into several institutions and fund managers.
But NELFUND, through its Director of Strategic Communications, Oseyemi Oluwatuyi, dismissed the reports as baseless and harmful to public trust.
“These reports, which suggest misappropriation and mismanagement of funds, are entirely false, grossly irresponsible, and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians,” the statement read.
“This is a coordinated distortion of facts that undermines public trust, weaponizes misinformation, and threatens the credibility of a national intervention still in its infancy.”
NELFUND said all tuition fees are paid directly to verified institutions and upkeep allowances are sent to students’ verified bank accounts.
“No funds have been mismanaged, stolen, or are unaccounted for under the current NELFUND student loan scheme,” the agency stated.
It explained that the figures being circulated stem from other education financing initiatives that existed before NELFUND began operations in 2024.
“They bear no relevance to the current student loan scheme and should not be falsely attributed to this institution,” the statement added.
NELFUND said its system is fully automated and eliminates any human interface in processing loans.
“Every application and disbursement is digitally tracked, time stamped, and verifiable,” Oluwatuyi said.
He further affirmed the agency’s cooperation with all oversight bodies, including the ICPC.
“Our commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering. We have complied fully with every request for information and will continue to uphold the highest standards of public accountability.”
