The Nigerian Education Loan Fund (NELFUND) has issued a stern warning to higher institutions withholding information or delaying disbursement of student loans, stating that such actions constitute a criminal offence.
Managing Director of NELFUND, Akintunde Sawyerr, made this known in Abuja on Wednesday during a stakeholders’ workshop focused on system automation and the loan application process.
The warning follows increasing reports of unauthorised deductions, double fee collections, and failure by some institutions to refund students who already received loans from the scheme. According to Sawyerr, full-scale investigations into these allegations have commenced, with separate panels involving NELFUND, the National Orientation Agency (NOA), and the Federal Ministry of Education.
Concerns have also emerged over possible collusion between some institutions and banks to delay student loan disbursements for financial gain. A recent report by The Guardian revealed that 51 institutions allegedly deducted between N3,500 and N30,000 from loan-backed tuition fees without authorisation.
Sawyerr emphasized that institutions must ensure swift disbursement of funds to students once they are credited by NELFUND. “If money is received on Monday, students must get value by Tuesday. There’s no excuse for delays. Students must not pay an extra naira,” he said.
He reiterated that NELFUND covers all institutional charges, including tuition, seminars, field trips, and other academic activities. “Once we’ve paid, students must access education without further cost. Any institution claiming otherwise is in violation,” he added.
So far, NELFUND has disbursed funds to 303 institutions, covering about 293,000 students.
Sawyerr assured the public that the agency is taking the matter seriously. “We are conducting internal investigations, and so are the NOA and the Ministry of Education. Institutions found guilty will face administrative sanctions, while criminal cases will be handed over to anti-corruption agencies,” he said.
