The Federal Government has summoned the Vice Chancellors of certain universities and the Managing Director of the Nigeria Education Loan Fund (NELFund) over allegations of misappropriating funds intended for the national student loan programme.
A recent report accused 51 tertiary institutions of making unauthorized deductions from student loan disbursements under NELFund.
In response, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a formal investigation into the alleged irregularities.
Concerned by the emerging claims, the Federal Ministry of Education announced it would hold an emergency meeting on May 6, 2025.
“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 issued by Boriowo Folasade, Director of Press and Public Relations.
The Minister of Education, Olatunji Alausa, described the allegations as “very disturbing,” stressing that they could represent a serious breach of ethical and legal standards.
“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,” Alausa was quoted as saying.
To enhance transparency in the student loan administration process, the Ministry disclosed plans to partner with the Athena Centre in launching a compliance-monitoring initiative.
This will include the rollout of a countdown webpage to track institutional compliance.
Additional measures include the creation of an Annual University Transparency Index and the provision of technical support to institutions.
University bursars and ICT heads will also undergo training aimed at developing and sustaining a new open-portal platform to improve accountability.
Launched on May 24, 2024, the NELFund scheme offers interest-free loans to students enrolled in Nigerian tertiary institutions.
As of April 2025, the programme has disbursed a total of ₦53.8 billion, comprising ₦30.1 billion in institutional fees and ₦23.6 billion for student upkeep allowances.
