The Federal Ministry of Education has initiated an official investigation into claims that certain Nigerian universities have made unauthorised deductions from student loans provided through the Nigerian Education Loan Fund (NELFund). This development follows a recent media report that sparked widespread concern regarding potential financial malpractice within the student loan disbursement process.
In a press release issued on 1 May 2025, the Honourable Minister of Education, Dr Maruf Olatunji Alausa, described the allegations as “very disturbing and extremely concerning.” He further stressed that such actions, if true, would compromise the integrity of the NELFund scheme.
“Any unauthorized deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFund was established,” the Minister stated, warning that such conduct would amount to a serious breach of public trust and the government’s commitment to equitable educational access.
Investigations and Initial Findings
Prior to the Ministry’s announcement, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) had already launched its own inquiry following claims that 51 higher institutions were involved in making illegal deductions from student loan payments. According to the Commission, students were reportedly charged between N3,500 and N30,000 from the funds allocated to institutional fees.
The ICPC revealed that although the Federal Government earmarked N100 billion for the loan scheme, only N28.8 billion has been disbursed to students thus far, leaving a balance of N71.2 billion yet to be accounted for. As part of the probe, the anti-corruption agency has summoned the Chief Executive Officer of NELFund, Akintunde Sawyerr, along with Central Bank officials and other relevant parties, for further clarification. The investigation will now broaden to scrutinise both beneficiary institutions and individual students.
Responding to the allegations, NELFund has denied any wrongdoing and rejected claims of financial mismanagement. The agency clarified that the figures cited in the media reflect older education financing schemes that were in place before NELFund’s establishment in 2024 and are not linked to the current operations. It emphasised that institutional fees are paid directly to verified universities, while student allowances are credited to the verified accounts of eligible recipients.
According to the Fund, the entire loan process is automated and digitally monitored, ensuring transparency and preventing any human interference.
Steps Toward Accountability
To address these concerns, the Ministry has scheduled an emergency meeting for 6 May 2025 with Vice Chancellors of the implicated universities and the Managing Director of NELFund. The meeting is expected to examine the allegations in depth, ensure proper accountability, and “reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.”
Additionally, the Ministry unveiled new initiatives aimed at strengthening transparency in the management of education loan funds. In partnership with the Athena Centre, a compliance-tracking system and countdown webpage will be introduced to monitor how institutions handle allocated funds. The government will also implement an Annual University Transparency Index to drive accountability and bolster the international standing of Nigerian universities.
Further measures include specialised training for bursars and ICT Heads from universities and polytechnics, focusing on the implementation of open-portal systems that allow for real-time monitoring of student loan transactions.
Reiterating the administration’s dedication under the National Education Sector Reform Initiative (NESRI), Dr Alausa affirmed the government’s commitment to transparency and responsible financial practices. He vowed that any individual or institution found culpable would be held accountable.
Dr Alausa also highlighted that NELFund, a flagship initiative introduced by President Bola Ahmed Tinubu, was designed to widen access to quality education and offer fair financial support to students. Any efforts to exploit the scheme, he said, would be at odds with the President’s broader vision for inclusive national development.