FG denies illegal deductions from student loans by tertiary schools

Friday, May 16, 2025 - Minister of Education, Tunji Alausa, has denied allegations of illegal deductions from student loans disbursed by the Nigerian Education Loan Fund (NELFund), stating that no misappropriation occurred. His comments follow reports and concerns raised by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which claimed that only N28.8 billion out of the N100 billion allocated for student loans reached the intended beneficiaries, leaving N71.2 billion unaccounted for.

The ICPC’s preliminary investigation indicated that while institutions received the funds, a substantial portion did not benefit the students as intended. In response, NELFund rejected the claims of mismanagement and instead accused certain unnamed tertiary institutions of colluding with banks to shortchange student loan recipients.

The ICPC had summoned various stakeholders, including officials from NELFund, the Budget Office, the Office of the Accountant General, the Central Bank of Nigeria, and heads of public tertiary institutions, for questioning over the matter.

Addressing the issue during a meeting with education stakeholders in Abuja, Alausa said, “We are making a good system better. We owe it to the students and the Nigerian public to ensure full transparency and standardisation.” He added that investigations so far had not substantiated the allegations of corruption or misappropriation.

The meeting, attended by vice-chancellors of federal universities, the executive secretary of the National Universities Commission (NUC), and the managing director of NELFund, also explored reforms aimed at improving transparency in the disbursement process.

Alausa pointed to communication gaps among institutions, NELFund, and students as a source of confusion, and announced the establishment of a high-level committee to harmonise university charges and address misunderstandings. The committee will develop a unified disbursement timeline, establish notification deadlines, and implement a communication framework that ensures students are informed of loan statuses through SMS, email, and phone calls.

Reiterating that tertiary education in Nigeria remains tuition-free, Alausa clarified that while there are legitimate institutional charges, these must be clearly defined and justified. “We are putting an end to ambiguity,” he said. “Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions. NELFund was created to expand students’ access to quality education and to support universities financially. Any attempt to exploit this fund is unacceptable.”