The Federal Ministry of Education has launched an investigation into alleged unauthorised deductions by several universities from student funds disbursed under the Nigerian Education Loan Fund (NELFUND) scheme.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) is also conducting a parallel investigation following reports that at least 51 tertiary institutions were involved in illegal deductions ranging from ₦3,500 to ₦30,000 from student fees.
Minister of Education, Dr. Olatunji Alausa, described the allegations as “very disturbing and extremely concerning,” noting that such actions undermine the foundation of the NELFUND initiative. He has summoned the Vice-Chancellors of the implicated universities and the Managing Director of NELFUND to an emergency meeting on May 6, 2025. The ministry emphasized its zero-tolerance stance on financial malpractice and plans to introduce a transparency index, open-portal system, and training programs for bursars and ICT heads.
Simultaneously, ICPC revealed that only ₦28.8 billion out of ₦100 billion reportedly released by the Federal Government has been traced to actual disbursements to students, leaving an unexplained ₦71.2 billion gap. The anti-graft agency disclosed that it had begun questioning top financial officials, including representatives from the Budget Office, the Central Bank of Nigeria, and NELFUND leadership.
Preliminary findings from ICPC suggest that NELFUND received ₦203.8 billion as of March 2024, with disbursements totalling ₦44.2 billion to 299 institutions, benefiting over 293,000 students. While a clear case of fund misappropriation has yet to be established, the investigation has now been extended to include the institutions and individual student recipients.
Dr. Alausa reaffirmed the government’s commitment to equitable access to education and assured the public that anyone found culpable would face strict sanctions. He stated that President Bola Tinubu had adequately funded NELFUND with the intention of supporting students transparently and fairly.
Reacting to public concerns, NELFUND’s Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi, dismissed claims of mismanagement as “grossly irresponsible” and “entirely false.” She clarified that NELFUND operates a fully automated system with no human interface, ensuring accountability in all transactions. Oluwatuyi further stated that the questionable figures circulating in the media stem from older education funding schemes, not the current student loan initiative, and pledged full cooperation with all oversight bodies.
