FG summons VCs over controversies surrounding student loans disbursement

The Federal Ministry of Education has commenced investigation into the alleged unauthorized deductions by universities from funds disbursed under the Nigerian Education Loan Fund (NELFUND) scheme.

Minister of Education, Dr Olatunji Alausa has accordingly summoned Vice-Chancellors for an urgent meeting on May 6, alongside the Managing Director of NELFUND.

Director, Press and Public Relations of the Federal Ministry of Education, Mrs Folasade Boriowo, who conveyed this in a statement on Thursday in Abuja, said the Ministry received with deep concern a report alleging some Nigerian universities to have made unauthorised deductions from funds disbursed under the NELFUND scheme.

She said the Minister described the allegations as “very disturbing and extremely concerning,” emphasising that any unauthorised deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFUND was established.

The Education Minister stated that 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.

The statement quotes the minister, “In response, the Ministry is convening an urgent meeting on May 6, 2025, with the Vice Chancellors of the affected universities and the Managing Director of NELFUND.

“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.

“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.

“Additionally, a training program will be organized for Bursars and ICT Heads of universities and polytechnics on the development and maintenance of an open-portal initiative.

“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. Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions”.

He further emphasised that President Bola Tinubu, who established NELFUND as a flagship initiative, made adequate budgetary provisions to support both students and institutions in a fair and transparent manner.

Meanwhile, NELFUND has said that is alarmed by misleading, and dangerously speculative reports circulating in the public space regarding the administration of the student loan scheme.

Director, Strategic Communications, Mrs. Oseyemi Oluwatuyi, making clarifications in a statement, said the 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”.

Oluwatuyi insisted that NELFUND maintains zero-tolerance to corruption and that the reports were a coordinated distortion of facts that undermines public trust, weaponised misinformation, and threatened the credibility of a national intervention still in its infancy.

“We wish to state the following, unequivocally: No funds have been mismanaged, stolen, or are unaccounted for under the current NELFUND student loan scheme.

“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.