The Federal Government has summoned Vice Chancellors of some Nigerian universities and the Managing Director of the Nigeria Education Loan Fund (NELFund) over alleged diversion of funds meant for the national student loan scheme.
The move follows a damning report that revealed about 51 tertiary institutions made unauthorised deductions from student loans under NELFund, prompting the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to commence a full-scale investigation.
Concerned about the gravity of the allegations, the Federal Ministry of Education has scheduled an emergency meeting for May 6, 2025, with the leadership of the implicated universities and the NELFund boss.
“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,” the Ministry stated in a release signed by its Director of Press and Public Relations, Mrs. Boriowo Folasade.
The Minister of Education, Dr. Olatunji Alausa, described the report as “very disturbing” and a potential breach of public confidence.
“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,” he was quoted as saying.
In response to the allegations and in a bid to strengthen transparency, the Ministry also announced a partnership with the Athena Centre to implement a compliance-tracking initiative. This will include the launch of a public countdown webpage to monitor transparency levels among Nigerian universities.
The government also plans to introduce an Annual University Transparency Index and provide technical support to institutions. A specialised training programme for university Bursars and ICT Heads is also in the pipeline to facilitate the creation and management of an open-portal initiative for student loan accountability.
NELFund was launched on May 24, 2024, to offer interest-free loans to students in Nigerian tertiary institutions. As of April 2025, the fund has disbursed a total of N53.8 billion — with N30.1 billion allocated for institutional fees and about N23.6 billion for student upkeep.
