The Nigeria Education Loan Fund (NELFUND) is facing growing criticism after several graduates from public tertiary institutions disclosed that their student loans were disbursed only after they had already completed their academic programs and left school.
Despite having finished their studies, these graduates reportedly continue to receive monthly upkeep stipends of N20,000, raising questions about the system’s efficiency and accountability.
During interviews with The PUNCH, some of the affected individuals narrated how they had initially applied for the loans while still in school but were forced to seek alternative funding when approvals were delayed. To their surprise, the loans were paid to their institutions long after they had personally settled the fees and graduated.
The disbursement delays have placed the student loan program under intense scrutiny, especially after the National Orientation Agency (NOA) raised allegations that some institutions may have engaged in fraudulent deductions from disbursed funds.
In response to mounting concerns, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a wide-ranging investigation into possible irregularities within the loan system.
Preliminary findings by the ICPC revealed that although NELFUND released a total of N100 billion in loans, only N28.8 billion actually reached the intended applicants. This leaves a glaring N71.2 billion unaccounted for.
Students and Parents Raise Alarms
The revelation has sparked outrage among students and stakeholders, including the National Association of Nigerian Students (NANS), which has vowed to protest the “gross mismanagement” of the loan scheme.
The NOA further alleged that some schools, in collaboration with certain banks, intentionally delayed disbursement to eligible students in a bid to exploit the funds. Media reports also indicated that unauthorized deductions, ranging from N3,500 to N30,000, were made from the tuition fees processed through the loan program.
ICPC spokesperson Demola Bakare confirmed in a statement issued last Thursday that a Special Task Force within the agency had promptly begun investigations upon receiving the reports.
A graduate who spoke to The PUNCH shared his experience: “I applied for the NELFUND loan during my final year because I was desperate to pay my second-semester fees. The approval didn’t come on time, so I paid from my own pocket. After graduating, I checked my portal and saw that NELFUND had paid the school.”
He continued, “I contacted them, and they advised me to request a refund from the school. But how do I do that when I’m no longer a student? I’m also still receiving the monthly upkeep payments. I’ll return those funds when repayment starts, but I won’t pay back the tuition fee they disbursed after I had already graduated.”
Another former student of the University of Benin recounted a similar experience: “I applied for the loan in my final year. When nothing came, I found another way to pay. Months later, I got an alert for N20,000 and found that my loan had just been processed. It’s ridiculous that funds are being disbursed to people who are no longer students.”
Parents and Academic Community React
One parent, Mr. Ibrahim, expressed dismay, stating that his son, who finished school two months ago, is still receiving upkeep stipends. “He was confused when the money came in. We don’t even know who to contact to stop it,” he said.
In reaction to the ongoing controversy, the Academic Staff Union of Universities (ASUU) has indicated it is monitoring the situation closely. ASUU’s National President, Professor Emmanuel Osodeke, stated, “We are awaiting the outcome of the investigation, and we expect that all those found culpable will be held accountable.”
Efforts to contact NELFUND’s Director of Corporate Communications, Oseyemi Oluwatuyi, for comment proved unsuccessful, as he had not responded to inquiries at the time of filing this report.
PUNCH NEWSPAPER
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