The Federal Ministry of Education has summoned vice chancellors in the financial infractions the Nigerian Educational Loan Fund (NELFUND) is said to have experienced.
Cases of illegal deductions to the tune of N7.5bn has been alleged.
Education Minister Dr. Tunji Alausa described the infractions in the loan disbursement as “very disturbing and extremely concerning.”
As ‘The Nation’ reports, also yesterday, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) announced that its men had launched a probe in the alleged infractions in the Student Loan management.
But the NELFUND has insisted that no funds have been mismanaged, stolen, or unaccounted for under the scheme.
President Bola Ahmed Tinubu introduced the Student Loan scheme to enable easy access to education by indigent students.
Upon approval of application, NELFUND pays directly the fees of the student to the university account while the student gets N20,000 monthly for upkeep.
But National Orientation Agency (NOA) Director-General Lanre Isa-Onilu raised the alarm about certain untoward activities around the payment in some of the universities.
This was dismissed as a product of minor technical glitches.
The statement said that the meeting will “thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.”
The minister warned that unauthorised deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFUND was established.
The statement reads: “To reinforce this effort, the Ministry, in collaboration with the Athena Centre, will launch a compliance-tracking initiative and a countdown webpage to monitor institutional transparency.
“They will also offer technical assistance and introduce an Annual University Transparency Index to promote accountability and enhance the global relevance of Nigerian universities.
“As part of our National Education Sector Reform Initiative (NESRI), governance remains the top pillar of our agenda.
“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately.
“NELFUND was created to expand students’ access to high quality education and to support universities financially in a legal and sustainable way. Any attempt to exploit this fund is unacceptable and contradicts the President’s vision for inclusive human capital development.”
The minister reaffirmed the administration’s commitment to protecting public funds and ensuring that students receive the full benefits of all government education support schemes.
The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report.
According to the Commission, the responses received were critically analysed and interviews were conducted with the concerned individuals.
On the strength of its investigation, ICPC revealed that the total money received by NELFUND as of March 19, 2023, was N203.8 billion.
“ICPC, however, found that the total amount disbursed to institutions from inception to date is about N44,200,933,649.00, while a total of 299 institutions have benefited from the funds released.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students having benefited from the fund.”
The Nigerian Education Loan Fund (NELFUND) insisted that reports on alleged infractions in the management of the Student Loan were misleading and inaccurate.
It described the development as dangerous for the administration of the scheme.
The statement reads: “The reports, which suggested ‘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.
“This is a coordinated distortion of facts that undermines public trust, weaponises misinformation, and threatens the credibility of a national intervention still in its infancy.”
It added: “The scheme officially launched its student loan application portal in 2024. As of today, all institutional fees are paid directly to verified institutions, while upkeep allowances are disbursed to the verified bank accounts of eligible student applicants.
“The figures and funding amounts currently being misrepresented in the public are drawn from entirely different education financing interventions predating NELFUND’s operational commencement.
It noted that it operates a zero human interface, fully automated loan system that eliminates opportunities for financial misconduct.
The statement further reads: “Every application and disbursement is digitally tracked, time stamped and verifiable. “Our commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering.
The statement noted that the circulation of unverified, context-free, and inflammatory claims at the critical stage of implementation, “is not only reckless, but a deliberate sabotage of a nationally significant, people centered programme designed to expand access to tertiary education and economic mobility.
“We call on the media, stakeholders, and the public to resist the pull of sensationalism and await verified updates directly from NELFUND.
