The Federal Government has summoned Vice Chancellors of several universities and the Managing Director of the Nigeria Education Loan Fund (NELFund) over allegations of unlawful deductions and diversion of funds under the student loan scheme.
The move follows a report alleging that 51 institutions were involved in making unauthorized deductions from student loan disbursements, prompting a probe by the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
Concerned about the reported financial irregularities, the Federal Ministry of Education has scheduled an emergency meeting for May 6, 2025. The session will include the Vice Chancellors of the implicated universities and NELFund’s leadership.
In a statement released on Friday, the Ministry’s Director of Press and Public Relations, Boriowo Folasade, said the meeting aims to “ensure full accountability and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.”
The Minister of Education, Olatunji Alausa, described the allegations as “deeply disturbing,” noting that any proven misconduct would represent a serious breach of public trust.
“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,” Alausa said.
To strengthen transparency, the Ministry announced plans to launch a compliance-tracking initiative in collaboration with the Athena Centre. This includes the introduction of an Annual University Transparency Index, a countdown webpage for monitoring transparency, and technical support for institutions.
Training sessions are also scheduled for university Bursars and ICT Heads to implement and manage an open-portal system, aimed at enhancing visibility in student loan processes.
Launched in May 2024, NELFund provides interest-free loans to Nigerian students in tertiary institutions. As of April 2025, the scheme has disbursed N53.8 billion, with N30.1 billion going toward institutional fees and N23.6 billion allocated as upkeep allowances.
The Ministry says it remains committed to preserving integrity and equitable access to education across the country.
