The Nigeria Education Loan Fund (NELFUND) has come under intense scrutiny following complaints by graduates of public tertiary institutions who revealed that student loans were disbursed to their schools’ months after they had completed their studies and settled their tuition fees independently.
Several affected individuals, in separate interviews with the PUNCH, disclosed that they had applied for loans before graduation but did not receive timely disbursement, forcing them to seek alternative means to pay their school fees. To their dismay, the loans were later paid to their institutions after they had graduated, and in some cases, months after they had left school.
Despite no longer being enrolled, some of these former students continue to receive monthly upkeep stipends of N20,000, raising further concerns over the efficiency and integrity of the scheme.
The student loan programme has recently attracted public attention after the National Orientation Agency (NOA) alleged that certain institutions were illegally profiting from the scheme through unauthorised deductions from the disbursed funds. In some cases, deductions ranging from N3,500 to N30,000 were reportedly made from tuition fees paid through the loan facility.
In response to the allegations, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a thorough investigation into the loan disbursement process. Preliminary findings by the anti-graft agency indicated that although NELFUND released N100 billion in loans, only N28.8 billion reached the intended beneficiaries, leaving over N71 billion unaccounted for.
This discrepancy has provoked outrage among stakeholders, including the National Association of Nigerian Students (NANS), which has threatened to stage nationwide protests over what it described as “gross mismanagement” of loan funds.
The NOA also alleged that some institutions, in collaboration with banks, deliberately delayed payments to eligible students to exploit the system for financial gain.
A graduate, who preferred to remain anonymous, recounted his experience: “I applied for the loan during my final year to pay my second-semester fees. The approval came too late, so I had to raise the money myself. I was shocked to later discover that NELFUND paid the school long after I had graduated. They told me to seek a refund, but I am no longer a student. I also keep receiving upkeep payments. I’ll return those when repayment begins, but I won’t pay back what they disbursed to the school after I had already settled the bill myself.”
Another graduate from the University of Benin expressed similar frustration: “I applied for the loan in my final year and waited for months without success. I had to pay my fees myself before exams. To my surprise, I recently received a N20,000 upkeep payment and discovered that the loan had only just been approved—months after graduation. This is a clear sign of inefficiency.”
A concerned parent, Mr Ibrahim, said his son—who graduated two months ago—continues to receive upkeep payments. “He was confused when he received the alert. We don’t know how to stop it. We need assistance,” he said.
Meanwhile, the Academic Staff Union of Universities (ASUU) has stated that it is closely monitoring the situation. ASUU President, Prof Emmanuel Osodeke, said the union is awaiting the outcome of the investigation and hopes those found culpable will be held accountable.
Efforts to reach NELFUND’s Director of Corporate Communications, Oseyemi Oluwatuyi, for a response were unsuccessful as he did not respond to messages or calls at the time of filing this report.
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