The Federal Government has urged tertiary institutions to permit students who have applied for the student loan programme to sit for their examinations without any restrictions.
The government also set up a high-level committee to streamline and standardise fee payment processes across the country’s tertiary institutions.
It said the committee’s work is aimed at enhancing financial operations between the universities and the Nigerian Education Loan Fund (NELFUND).
The panel is expected to standardise the nomenclature of the charges, the timeline when NELFUND would disburse institutional loans, and when universities and other institutions would announce disbursements.
Education Minister Tunji Alausa addressed reporters yesterday in Abuja after a meeting with NELFUND, vice chancellors and heads of tertiary institutions accused of misappropriating student loan disbursements.
The minister said the panel has three weeks to submit its report.
He debunked the allegations by the Independent Corrupt Practices and other related offences Commission (ICPC) that NELFUND could not account for N71.2 billion.
He said: “The current processes are working, but we are working to better the system we have now.
“The aim is to serve both NELFUND and our citizens more efficiently and align with the broader agenda of the current administration.”
Alausa admitted that the removal of service charge by beneficiary institutions was responsible for allegations of loan deductions by students.
He said: “The differences that students are saying from when NELFUND pays the universities and the refund they give back to the student is the service charge. The university takes out its service charge, and that’s what is accountable for those differences.”
“We’re working to better streamline those processes and come up with more standardised guidelines to address those issues.”
The minister described allegations of loan misappropriation by tertiary institutions as “communication problems”.
Alausa announced that one of the major decisions reached during the meeting was the formation of a committee comprising representatives of NELFUND, the Ministry of Education, the National Universities Commission (NUC), and key university officials.
He explained that while the actual fee amounts might differ among institutions, all universities would be required to adopt uniform terminology to ensure transparency.
Alausa added: “The committee will determine and publish standard timelines for when NELFUND will disburse funds and when universities must notify students.”
Responding to questions on the discrepancies between student fees and what NELFUND pays, the minister said the committee would create a clear framework for fee components to eliminate confusion and ensure accurate disbursements.
“Universities will disclose service charges upfront to avoid misunderstandings in refunded amounts,” he added.
Some of the students told our reporters that they had passive knowledge of the scheme; others were uninterested in it.
While those with a passive idea blamed poor sensitisation by relevant authorities on the benefits, others said they are wary of the repayment terms.
Many parents and stakeholders from the two geopolitical zones aligned with the students.
They listed ego, perceived marginalisation, and lack of trust as other likely contributors to the students’ low interest in the scheme.
The students, parents and stakeholders, however, suggested improved sensitisation by relevant authorities as the best way to change the trend.
NELFUND Managing Director/Chief Executive Officer, Akintunde Sawyerr, had, early this month, identified low poverty rates and cultural nuances as major reasons for the low loan application by Southsouth and Southeast students.
Statistic released by NELFUND last week indicate that only 27,098 students benefited for the loan in the Southeast and 37,180 from the Southsouth.
The Northwest has the highest figure of beneficiaries with 157,831 students, followed by the Northeast with 127,058 and Southwest with 92,850. Northcentral has 74,120 beneficiaries.
The student loan scheme is a cardinal programme and campaign promise of President Bola Ahmed Tinubu.
It is designed to prevent indigent students from dropping out of school and to assist parents save the money they would have used in paying school fees.
Successful applicants’ fees are paid to the institution of learning after verification.
The student gets N20,000 cash monthly, directly pay to him, for his upkeep.
The repayment of the interest-free loan by the student will commence two years after completion of youth service, provide the student has got a job or he is earning income.
The tertiary institutions visited by our reporters in the Southeast are the Nnamdi Azikiwe University(NAU), Awka and Chukwuemeka Odumegwu Ojukwu University (COOU), Igbariam in Anambra State; University of Nigeria, Institute of Management and Technology (IMT) and Enugu State College of Education Technical (ESCET) in Enugu State; Alex Ekwueme Federal University Ndufi-Alike Ikwo (AE-FUNAI), Alvan Ikoku Federal University of Education, Owerri in Imo State and Ebonyi State University, Isieke in Ebonyi State.
In the Southsouth were the University of Benin and Ambrose Alli University (AAU), Ekpoma in Edo State; Delta State University (DELSU), Abraka and Federal University of Petroleum Resources, Effurun in Delta State; Dennis Osadebey University, Oshimili and Southern Delta University, Ozoro in Delta.
Others were the University of Port Harcourt, Rivers State University and Ignatius Ajuru University of Education in Port Harcourt, Rivers State
Delta
A former union leader, Wiska Monday, said many students in the Niger Delta are uninterested in the programme because ‘’they have sponsors that fund their education.’’
He added that repayment conditions were a part of the contributors to the low interest by students of the Southsouth.
He said: “Though the repayment terms appear good but there is no certainty of getting a job after graduating.
‘’The question on the minds of students is likely: How will I pay back the loan? Students are no businesspeople, who may be tempted to take loans that they can repay through profits.’’
Rivers
At the Federal Polytechnic, Bonny, a student, Gabriel Nwoha, said that though he was aware of the scheme, he had not made any effort to apply because of ‘’reasons best known to me.’’
National President, Nigerian Union of Rivers State Students (NURSS), Chijioke Amadi, said students in the state were initially not interested in the scheme until their unions embarked on sensitisation campaigns in various campuses.
He stated that the delays in payments to the beneficiaries and the institutions discourage enrolment by students in the state.
Amadi, who is a student of state government-owned Ignatius Ajuru University of Education added: “Before we began the sensitisation outreaches in the various campuses in Rivers State, some of the students, who knew about the scheme and wanted to enroll, had a drawback for fear of repayment strategies and enrolment bottlenecks. “
Southsouth stakeholders speak
Stakeholders in tertiary institutions and parents in the zone said apart from poor awareness by students, distrust and sceptism were also contributory factors. .
A former Deputy Vice-Chancellor, University of Abuja, Prof. Philip Afaha, said information on the loan scheme had not sunk into the consciousness of students.
Afaha, who hails from Akwa Ibom State and currently Special Adviser to the Edo Governor on Policy and Strategy, said: “NELFUND is a wonderful programme of the President Bola Tinubu’s administration, aimed at providing financial succour and support to students of tertiary institutions and alleviating the burden on parents.
“Unfortunately, there is no adequate information on the programme. It looks elitist, as most students and parents in suburban areas have no access to information about NELFUND.
“There has to be enough sensitisation and awareness campaigns on NELFUND. I suggest a campus-to-campus campaign, so that students can key into it.”
President, Movement for the Izon Ethnic Nationalities in the Niger Delta (MOSIEND), Kennedy Tonjo-West, said he was not happy with the low patronage of the scheme in the Southsouth. He called on NELFUND to be transparent with the process of obtaining the loan.
Tonjo-West said it was not enough to reel out statistics of percentage of the loans disbursed regionally, stressing that analysis of the number of unsuccessful applications from all the zones should be disclosed.
He said, “We advise that the loan initiative should be more transparent and equitable. It is a lack of transparency that has made it to favour students from a region .’’ We urge the authorities to ensure equal access to all and increased transparency in the selection process, to address regional disparity.’’
Dean of Students’ Affairs, Delta State University (DELSU), Abraka, Prof. Ignatius Njoseh, revealed that in 2024, only 222 students benefited out of the 953 others that applied.
Asked to state the level of response by DELSU students, Njoseh said: “It is not even up to average in the first/last year, because the students were sceptical.’’
He pointed out that the students’ concerns border on “trust” in the scheme.
“The only concern the students had was trust. At first, they were looking at it as a scam until we started sending message on our own,’’ the Dean said.
Higher Education Commissioner, Prof. Tonukari Johnbull, however, told The Nation that his ministry had commenced a series of engagements with heads of institutions and students unions to stimulate the enrolment of students in the programme.
A Benin-based parent, Titus Akhigbe, said: “ The coordination of NELFUND’s students’ loan scheme is poor, and the initiative is almost inaccessible.
‘’I have two children who are undergraduates of UNIBEN but they claim ignorant of the loans by NELFUND.”
Another parent, Douglas Ogbankwa, said: : “Many students of the tertiary institutions in this state are not aware of the laudable initiative as the publicity is too low.
‘’Top officials of NELFUND must vigorously engage social media influencers, to put the issue on the front burner to fully carry along the youths of this Gen Z era, who are caught up in the tech environment, and always on various social media platforms.’’
Anambra
A student leader in one of NAU’s departments , Iruoma Eze, said ‘’some unanswered questions surrounding the loan’’ contributes to the apathy in the Southeast.
Eze said: “When I approached some students to inform them of the loan, they asked several questions, including ‘’what is the interest rate? What of the payback arrangements? and others which they could not get satisfactory answers.
“For the mere fact that it’s a loan, they felt they would be indebted to Nigeria. They felt that could cost them many things . For many, scholarships would have been better.
“The average Igbo man will not want to be limited by such thing (debt) . He will prefer to struggle or at most, borrow from a relation.”
Lucy Nnona of IMT, who admitted being aware of the scheme, said earlier information made her to lose interest in it.
She said, “When the NELFUND was launched, we heard that they will prioritise some geopolitical zones. Some of us from the Southeast removed our minds from it. This is because we thought they would never include us. I never knew we would be included afterwards.”
Ebonyi
Omege James of AE-FUNAI said he didn’t apply for the loan because some political office holders in his council area give grants to students from their constituencies.
He, however, believes that ‘’people are afraid of applying for the loan because they are not properly enlightened.”
“I come from a poor home, but we have access to finance for my education through some government officials who give us grants regularly to help us pay our fees,’’ James said.
He called on NELFUND and government at all levels to come up with better programmes to enlighten students.
The AE-FUNAI Student Union Government President, Sopuruchi Victor, lamented that many students of the institution were sceptical about the loan even after being sensitised about the programme.
Victor said: “Last year, we attended a Southeast students engagement that was held in October. It had NELFUND officials in attendance who enlightened us about the fund.
“When we got back to our schools, we carried out sensitisation programmes across all faculties with faculty presidents, faculty associations and departmental associations.
“We made them understand that this(loan) is not something that they will be paying back immediately.
“After that , we got about 1,478 of our students who enrolled for the first batch. They became beneficiaries but I simply cannot say the reason or reasons why enrolment is low in the Southeast.’’
Samson Ike, a student of EBSU, said the fact that there is no job guarantee after graduation is a factor that dissuades them from taking the loan.
“If you graduate and don’t get a job, how will you pay. I have heard that one will start payment once he begins to work, but this Nigeria where anything can happen.
‘’I am personally afraid, and I am sure many other students are.’’
Another student and immediate past SUG President of Alvan Ikoku Federal University of Education (AIFUE), Emmanuel Osuji, attributed the apathy in the zone to students’ misconceptions about repayment of the loan.
“Most students don’t have interest because of the loan clause ; they think if they collect the loan, they are still going to pay back,” Osuji explained.
He noted that despite participating in sensitisation efforts, many students are waiting to see the experiences of those who have already applied.
“I was among the people that did the sensitisation; they are waiting for those that have applied,” he said.
Osuji expressed optimism that the recent disbursement of funds would lead to increased interest in the next batch of applicants.
Southeast stakeholders list reasons, panacea
Some of the stakeholders in the zone, who also attributed the low applications to poor sensitisation, added that ego and sense of marginalisation by Igbo youths were contributors.
A parent, Modestus Umenzekwe, said he believes the real reason for the lack of interest in the loan by Southeat students was ego.
He also said it was not unlikely that the feeling of ‘’marginalisation by many Igbo youths’ was responsible.
He said: ‘’You know a typical Southeastener has I can do it attitude. That is what I mean by ego. I simply don’t understand why our students cannot key into the laudable programme which comes on a platter.
“Again, there is this alleged marginalisation of the zone by the government. This, I believe, makes them(students) feel the loans are not for them.
“But it’s not so, the loans are real and working. Many people have received it.
“ We need proper sensitisation of our youths. We need the traditional way of sensitising them through the town criers, going to the markets and our churches.’’
A publisher, Tony Okafor, said the apathy characterising in the Southeast could be linked to ignorance or misconception of the loan’s benefits, terms and conditions, fear of debt and repayment burdens
He called for the simplification of the application process, provision of support services, financial literacy training and counseling programmes to assist students make informed decisions.
However, some of the institutions in the zone have taken the lead in making sure the anomaly is corrected by setting up committees to that effect.
Others are looking up to the student’s Union governments to take the lead.
Bursar of NAU, Gozie Egwuatu, revealed that the institution has “ released money to print fliers to sensitise its students.”
“ We realise there is work to do by our people to help the students in that regard, “ he said
A reliable source in the university, who did not want to be quoted, revealed that a committee has also been set to ‘’school students on why it’s important for them to access the loan.’’
Head of Publicity Department, AE-FUNAI, Iyke Elom said the school has been assisting students to navigate the enrollment process.
I can’t really speak for each student anyway, but in respect to our school, students have been registering to access the loan.
“If you check the breakdown that was released right from the beginning, our school has the highest number in the Southeast, even in Nigeria at some point in time.
“Our students were enlightened and also informed about the opportunities in the loan. You know, a loan is not compulsory.That’s what people should understand first. It’s not compulsory.
“ But we are publicising and informing students and just enlightening them on the need and the benefits of accessing the loan.”
Student union bodies have issued a strong warning to vice-chancellors, rectors, and provosts of higher institutions over alleged lack of transparency and accountability in the disbursement of the Nigerian Education Loan Fund (NELFUND).
The National Association of University Students (NAUS) and the National Association of Nigerian Students (NANS) jointly cautioned against any attempt to divert student loans for personal gain.
Speaking during a press conference at the NUJ Correspondents’ Chapel in Osogbo, Osun State, on Friday, NAUS Chairman, Comrade Samson Adeleke, said the mismanagement of the NELFUND disbursement was already having negative effects on students in various institutions.
He stressed the need for institutional heads to uphold transparency and ensure that the loans reach their intended beneficiaries without interference or corruption.
“We demand that Vice-Chancellors and Provosts of tertiary institutions in Osun State provide a detailed account of NELFUND disbursement and expenditures.”
Also, the NANS Southwest Coordinator, Comrade Taiwo Omolewa, said, “All the VCs, Rectors and Provosts are on our watchlist regarding rumours of diverting student loans for personal use.
Similarly, a student union leader, Stephen Olarewaju warned that NELFUND is to cushion the effect of the economy reform, hence it must not be converted for personal use.
The Nigerian Education Loan Fund (NELFUND) has urged student leaders across various tertiary institutions to take full ownership of the new interest-free education loan scheme.
This call was made by the Executive Director of Operations at NELFUND, Iyal Mustapha, during a Stakeholders’ Engagement Session and Technical Workshop on NELFUND System Automation and Loan Application Processes in Abuja.
The fourth day of the stakeholders’ engagement was dedicated to a session with Student Union Presidents of tertiary institutions.
Mustapha cautioned institutions against delays in verifying students’ applications.
He explained that once applications are verified, they are forwarded to the respective institutions for confirmation, a step that has sometimes delayed disbursement due to slow institutional responses.
“We need your schools to respond promptly. If they don’t confirm your status, we cannot release the funds. You must play a role in ensuring your institutions fulfill their responsibilities.
“This is your opportunity. We are the youth, and we are here to support you. This loan is about removing financial barriers so you can focus on your education.
“There is no interest, no guarantor, and no harassment, only a commitment to learning,” he stated.
Mustapha explained that the NELFUND scheme was developed to address dropout rates linked to financial hardship.
According to him, it provides Nigerian students with access to loans that cover institutional charges and include a monthly upkeep allowance.
He emphasised that any student enrolled in a recognised tertiary institution in Nigeria is eligible, regardless of background or geographical location.
“There is no reason for anyone to drop out of school,” he added.
Addressing concerns about loan repayment, Mustapha assured students that repayment would only commence two years after completing the National Youth Service Corps (NYSC), and only if the graduate is employed.
“In the event of death or a medically verified permanent disability, the loan would be written off.
“No one is pursuing you. This is your loan, your government, and your repayment supports the next generation,” he said.
He also advised students who had received upkeep allowances without corresponding institutional fee payments to approach their institutions, noting that upkeep funds cannot be disbursed unless institutional charges are settled.
“One of the issues we have identified is that some institutions are failing to notify students when payments have been made.
“Anyone who has received upkeep should understand that their institutional charges have already been paid to their institution,” he clarified.
The President of the National Association of Nigerian Students (NANS), Olushola Oladoja, warned institutions and individuals allegedly undermining the federal government’s student loan scheme.
Speaking on the allegations of sabotage by some institutions, Oladoja revealed that the association had set up a five-member investigative committee to examine growing concerns about loan disbursement and accountability.
According to him, NANS took swift action following intelligence from the National Orientation Agency (NOA), which reported irregularities in how some institutions handled student loan payments.
“We received information indicating that there are issues within NELFUND, including cases where the Fund claims to have paid institutions, but the schools failed to notify the students.
“This cannot be allowed to persist. Our committee will engage directly with NELFUND, visit the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to verify findings, and get to the root of the matter,” he stated.
Also speaking, Umar Lawal, a final-year student of Bayero University, Kano, commended President Bola Tinubu’s administration for delivering on its promise of a student loan scheme aimed at transforming tertiary education in Nigeria.
While expressing appreciation for the initiative, Lawal also raised concerns about the lack of transparency and accountability in some tertiary institutions, saying it must be addressed.
The Nigerian Education Loan Fund (NELFUND) has warned heads of tertiary institutions against illegal charges after it has paid the funds on behalf of students.
Its Managing Director, Akintunde Sawyerr, gave the warning yesterday. It was during the last day of the stakeholders meeting and engagement with Heads of Colleges of Education, Agriculture, Health and Nursing in Abuja.
Sawyerr said while NELFUND lacked the statutory power to suspend, remove or expel erring heads of institutions, any traced illegality will be reported and dealt with administratively by the Minister of Education, Tunji Alausa.
The NELFUND boss said the agency would not allow the initiative of President Bola Tinubu towards making education accessible to willing Nigerians to be sabotaged on the altar of selfish interest.
He said the commitment of the agency is to pay all registration charges that will admit students into classes for lectures, tutorials, and examination halls, among others.
Sawyerr said 303 institutions have received institutional fees on behalf of 293,000 students.
He added that the loan is applicable with how it has been set up and this includes JAMB, NIN, BVN and the matric numbers, while remarking that the longevity seems to have attracted more people.
Sawyerr said: “The commitment of NELFUND is to pay all their registration charges. Our instruction is that once they have paid their institutional charges, they must have access. I repeat, they must have access to education, lectures, classes, tutorials and examinations.
“We paid the whole amount. We don’t want the students to put their hands in their pockets and bring out money, and we do not want students to pay because the school told them they haven’t received any money when they already have.
“That’s going to be a serious matter and will be attended to administratively. And if anything illegal is going on, they will be dealt with as criminal offences if schools are asking students to pay when we already have paid.
“This is not an issue of refund. There are certain instances when we have made payments to schools after the students have actually paid because we started payment mid- cycle, but anybody who pays to the school after the school has received money from NELFUND is committing a crime.
“We don’t have the power to sanction- we can’t suspend, remove or expel, but if we find anything,we have to take it to the minister and if it’s criminal in nature, we have to escalate it to the agencies that will ensure that economic crimes and practices are not being committed.”
The managing director of the Nigeria Student Loans Fund, Akintunde Sawyerr, stated on Wednesday that the Independent Corrupt Practices and Related Offences Commission (ICPC) made an error when it alleged the diversion of funds by the agency.
Sawyerr, who appeared before the House committee on student loans, also said that the anti-graft agency underreported the funds received so far by the agency, as well as the amount it has disbursed.
He explained that although the anti-graft agency acknowledged its mistake, the claim of fund diversion in NELFund caused significant damage, as such news undermined the trust of Nigerians in the agency.
He expressed gratitude to the House for the opportunity to clarify the situation, adding that since its establishment, NELFund has received about N203 billion from the government and has disbursed ₦54 billion across 303 government-owned institutions and 293,000 students.
He said, “We are truly grateful for the opportunity to clear the air and to put to you the position as it relates to the social media and in some cases, print media reports about possible discrepancies, irregularities in the operation of the Nigerian Education Loan Fund.
“We took these reports with the utmost seriousness because we recognize several things. One, the importance of this particular policy thrust to the administration. We recognize the importance of this particular policy thrust to long-suffering students.
“We recognize the importance of this policy thrust to this House, where this particular bill was initially introduced by the former Speaker and ably supported by members of this House. So we feel very strongly about the role that this House has played, and we need to be very, very respectful of the support that has also come.
“If you recall, this act was reenacted or repealed and reenacted. So you’ve put a lot of work into it, and I think it went through in 24 hours, the reenactment. In a similar vein, in terms of the speed of reaction, we copied you.
“The ICPC released a statement last Friday, indicating that they had been looking into some matters and had concluded that some irregularities were taking place at the fund, such as the irregularities they seem to have identified with the institutions and their relationship with the students in terms of access to education and charges or otherwise.
“I think their report followed a report in the print media that suggested that 51 institutions were erring. We, as the NELFund, were caught up in that release by the ICPC, who indicated that they thought that funds had been diverted by the Nigerian Education Loan Fund.
“We immediately reacted to that report because we recognized the damage. Even though we knew it was unfounded, we recognized the damage that it might do to public confidence in a scheme where there was already a great deal of skepticism.
“Our reaction led to the ICPC looking again at their statement, and within a matter of hours, they retracted the statement that suggested that the Nigerian Education Loan Fund might be diverting funds.
“They did not retract their assertion about the irregularities in the educational system and in the institutions, but they retracted wholeheartedly their allegation that funds have been diverted. I don’t think that has ever happened in Nigeria, where a security agency within ours reverses itself on a statement that was made.
“Nevertheless, a great deal of damage was done because once news is out there, you can retract all you like. It takes on a life of its own, and a lot of confidence has been lost in our institution. It is sad for the institution of NELFund and the country of Nigeria.
“We have worked very hard to put out the narrative that actually the new statement by the ICPC vindicates NELFund and establishes the fact that no funds have been diverted.
“So, if I can quickly go to the numbers, just to set the scene for how the expenditure at NELFund has gone and how we see, based on the facts that we have, what institutions have and what students have benefited. So, I can say, first of all, before I go into the numbers, let me say that the funds that are received by NELFund and the law that you, this great house, put in place were very clear.
“90% of the funds that come to NELFund are to be spent exclusively on the loans. So, 90% of any funds that we receive must go towards paying the fees of students. Those funds cannot be touched and cannot be used for anything else. Any form of diversion in that regard will be a breach of the law.
“So, just going straight to the numbers, I can confirm that the Nigerian Education Loan Fund has paid, as of today, 303 government-owned institutions such as universities, polytechnics, and colleges of education.
“NELFund has disbursed a total of approximately ₦54 billion to those who applied. This is split into two sections. ₦30 billion has been paid to the 303 institutions, while ₦24 billion has been paid as upkeep, as pocket money or stipend to 293,000 students who are Nigerians studying at the tertiary level in Nigerian government-owned institutions.
“So far, NELFund has received ₦203 billion paid into the bank account that we have at the Central Bank of Nigeria. I’ll just break that down, because those funds came in segments. We received an initial ₦10 billion from the Office of the Accountant General, appropriated funds as directed by the Honourable Minister for Finance. We then received 71 billion naira from TETFund.
“This was as a result of an order by the President for TETFund to release 143 billion naira to NELFund. They released ₦71 billion in the first instance, and then another 71 billion. We then received a further ₦50 billion, which is recovered proceeds of crime, from the Economic and Financial Crimes Commission following a directive from the President.
“So the total comes to ₦203 billion received. I raise these, and I mention these figures, because apart from the fact that the statement by the ICPC was unfounded, and later confirmed by them that it was unfounded, there were also some inaccuracies in their announcement. Their announcement suggested that we have received ₦100 billion.
“Their announcement suggested that 28 billion had been disbursed. That figure was wrong. It was understated. Both figures are understated. And it therefore concluded that ₦71 billion may have been diverted.
“So you can see that from even the figures they provided, which were inaccurate in the first instance, the wrong conclusions were drawn even about that. I have to say that we take with the utmost seriousness any issues of funds being diverted within and outside or related to in any way NELFund, because we recognize that this project is sacred, and it should not be tampered with, because the people and the constituency that we are catering for really usually have nowhere else to turn to. They have no jobs.
“They have no opportunities. And education represents probably the last bridge that they can climb to get an opportunity. So, we recognise that we can stunt the growth of not just Nigeria, but of individuals within Nigeria, if we don’t behave and act responsibly.
Chairman of the House Committee on NELFund, Ifeoluwa Ehindero, said the committee has been inundated with a series of concerns by Nigerians on happening within the fund, hence the interaction to get to the root of the matter.
He said, “The administration of the student loan scheme has been implemented by the National Education Loan Fund. The committee has been inundated with several reports, making waves on social media, including concerns about possible diversion of loan funds and issues that have to do with the disbursement and administration of student loans by certain federal institutions.
“This has necessitated this meeting that we have called so that the agency, the National Education Loan Fund, should come and make clarifications and enlighten this committee on the issues that have been makingthe rounds on social media.
“So, based on this, you have been invited to make clarifications and enlighten this committee on the issues that have been going on, on the disbursement and administration of the student loans being administered by your agency.”
The National Association of Polytechnic Students (NAPS) has issued a five-day ultimatum to the Nigerian Educational Loan Fund (NELFUND) board to provide a detailed breakdown of fund disbursement.
The students made the demand in a communique issued on Wednesday and signed by NAPS President, Eshiofune Oghayan, and Senate President, Oyewumi Ayomide.
NAPS threatened to mobilise for protests nationwide should NELFUND fail to provide the breakdown of how polytechnics received funds.
The student loan scheme has come under intense scrutiny following allegations by the National Orientation Agency that some institutions, in collaboration with banks, have been making fraudulent deductions from student loan disbursements.
Last week, the Independent Corrupt Practices and Other Related Offences Commission said its preliminary probe revealed that while NELFUND had released N100bn as student loans, N71bn was accounted for.
But NELFUND Managing Director, Akintunde Sawyerr, in an interview on Channels TV’s Politics Today on Sunday, debunked the allegation of missing N71 billion students’ loan.
He said, “We are all looking for this so-called money. First of all, let me be very clear. No money has been stolen.”
The communique by NAPS said: “We issue a five-day ultimatum to the NELFUND board to publicly provide a detailed breakdown of how funds were disbursed. Specific figures showing how polytechnic students benefited.
“NELFUND should provide concrete plans to remedy the glaring exclusion of our constituency.”
The association further threatened to take action should their demands not be met.
“Organise a mass protest with 0.9% of Nigeria’s 28.1 million students; File petitions with the DSS and EFCC for a full-scale investigation; Pursue democratic means, use all democratic means to seek justice”, the statement partly reads.
NAPS also said it has resolved its leadership crisis that lingered for months.
“Our house—once rattled by storms of discord—now stands tall. For months, NAPS grappled with a leadership crisis that threatened to erode its foundation. It was a moment of reckoning, one that tested the fabric of our values and the resilience of our cause,” it added.
It also lauded the Executive Secretary of the National Board for Technical Education, Prof Idris Bugaje’s reforms, which it said have restored dignity to the polytechnic system.
“We extend heartfelt commendation to Professor Idris Bugaje, Executive Secretary of NBTE. His reforms have restored dignity to the polytechnic system, and his recent appointment of Comr. Opeyemi Ridwan—immediate past NAPS President—demonstrates an unwavering commitment to youth advancement,” it said.
NAPS also passed a vote of confidence on Comr. Sunday Dayo Asefon, the Senior Special Assistant to the President on Students Engagement; Ayodele Olawande, Minister of Youth Development, and Seyi Tinubu, for serving as the living bridge between students and the government.
The management of the Nigerian Education Loan Fund (NELFUND) has said it gets an average of 1,000 applications daily from students across the country.
It also said over half a million students are currently on its portal benefiting from the loan scheme.
The fund’s Managing Director and Chief Executive Officer, Akintunde Sawyerr, gave the numbers yesterday in Abuja while welcoming participants to a stakeholders’ engagement and technical workshop on NELFUND System Automation and Loan Application Processes.
Sawyerr said the stakeholders’ engagement was organise to close some observed gaps in the loan applications.
The chief executive said the aim of establishing NELFUND by the Federal Government goes beyond dishing out loans to students but to democratise opportunities for every young Nigerian who is willing to learn and grow to have a real shot at education, regardless of their background, location, or chosen path of study.
Buttressing the idea behind the stakeholders’ engagement, Sawyerr noted that for too long, many students, especially in technical institutions, faced steep financial barriers.
He added that some dropped out while others have never applied.
Sawyerr said: “This is the gap we’re here to close. But we know we can’t do it alone. This is a shared mission. It belongs to all of us – government, institutions, and the private sector alike.”
“This technical workshop marks a major step forward. We’re not only providing financing.
We’re building a technology-driven system that makes it easier for students to apply, for institutions to verify, and for funds to be disbursed with speed, fairness, and accountability.”
Commenting on some perceived challenges and how the fund hoped to close the gaps, Sawyerr said: “You know, when you launch a project of this magnitude, what you do is to do all the preparation you can. Then you launch it into the marketplace – if I can use that expression – and then you see the reaction, the level of engagement, the issues, and then you make a plan as to how you’re going to make it better.
“So, we’re doing this now because, yes, we want to improve what we have already, but we’re going to do this every so often so that as we discover new things, new opportunities, new challenges, new problems, we can address everything in one go.”
• ‘BEA suspended to channel public funds to strengthen education system’
The Minister of Education, Dr. Tunji Alausa, has debunked claims of large-scale looting at the Nigerian Education Loan Fund (NELFUND).
He said the recent controversies stemmed from delayed reporting by universities rather than corruption.
Addressing concerns raised by a retracted Independent Corrupt Practices and Other Related Offences Commission (ICPC) report, which alleged that N70 billion of NELFUND’s N100 billion was misappropriated, the minister described the claims as “sensationalised”.
“There’s been a lot of sensationalisation in the news on NELFUND in the last few days. The ICPC report saying almost N70 billion was not used to service children’s education was retracted. It wasn’t true,” Alausa said.
The minister explained that the issue arose from universities failing to promptly notify students about fee payments made by NELFUND.
“What happened is that fees, sometimes going into hundreds of millions of naira, get paid to the universities, but they don’t notify the students. The students are anxious, thinking their fees haven’t been paid,” he said.
Alausa outlined government’s plans to address the issue, saying: “We’ve quickly set up guidelines, which we will be discussing with the universities today. We will give timelines on when universities get NELFUND fees and the duration they need to inform students.”
The minister assured Nigerians that NELFUND remained a “legacy intervention” for the benefit of over 500,000 students and reaffirmed the ministry’s zero-tolerance for fraud.
He added: “It wasn’t a case that N100 billion got released to NELFUND and N70 billion was looted. Absolutely not! The process we have now has no mechanism for that to ever happen.”
Also, Alausa has explained why the Federal Government suspended scholarships under the Bilateral Education Agreement (BEA).
The minister said the move was meant to address inefficiencies and redirect public funds to strengthen the nation’s education system.
The suspension, aimed at ensuring prudent use of resources, followed a review that exposed the sponsorship of students for courses readily available in Nigeria at exorbitant costs.
Alausa highlighted the financial burden of the BEA, citing an instance where N640 million was budgeted for just 16 students to study in Morocco.
“Why would we spend N640 million just for travel expenses and other things to send 16 students to Morocco to study something that we have in the country?” he queried.
The minister said a N9 billion budget for BEA scholarships was being used to fund courses, like English, in French-speaking countries.
“I was shocked to find that students are being sent on scholarship to go to Algeria, a French-speaking country, to study English. Courses like Psychology, Sociology, and Mathematics. They are all available here with even higher quality,” he said.
The Nigerian Education Loan Fund (NELFUND) has disbursed N53.98 billion to 516,212 students as loans.
NELFUND’s Executive Director (Operations), Iyal Mustapha, made this known yesterday at a stakeholders’ engagement and technical workshop on system automation and the loan application process in Abuja.
He added that 576,058 students have so far registered for the loan by the agency, which currently has N170.44 billion in its coffers and is ready for disbursement.
Managing Director and Chief Executive Officer of the agency, Akintunde Sawyerr and Chairman, House of Representatives Committee on Students Loan, Scholarships and Higher Education Financing, Ifeoluwa Ehindero, were present at the event, being attended by heads of tertiary institutions in the country.
The Executive Director stated that NELFUND needed ‘’ to do more sensitisation in the South to increase the number of applications” for loans.
He said: “Students from the Southsouth and Southeast don’t believe the loan is real. That’s why we have low applications from the two regions.
“The Northwest is leading in the number of applications. Students from the North seem to have embraced the loan scheme.’’
Mustapha described the workshop as a critical milestone in the collective journey by the stakeholders to deliver a fully digitised, transparent, and student-centric financial aid system for higher education in the country.
He advised them to show higher interest in the scheme because of its immense benefits to them and the relief it would give their parents.
Figures from NELFUND show that only 27,098 students applied for the loan from the Southeast and 37,180 from the Southsouth.
The Northwest has the highest number of applicants, with 157,831 students, followed by the Northeast with 127,058. Southwest has 92,850 applicants and Northcentral, 74,120.
NELFUND boss Sawyerr explained that the meeting was intended to influence how the payment platform evolves and how it addresses practical challenges faced by institutions and students alike.
He said: “We are not here merely to discuss another government initiative. We are here to activate a national transformation on how we fund, manage, and support access to higher education in Nigeria.
“As many of you know, the Student Loan Initiative is in perfect alignment with the Federal Government’s vision—to make quality education accessible to all Nigerians, regardless of socioeconomic background.
“I want to emphasise that what we are building here is not just a loan platform. We are building a foundation for national development. We are building a Nigeria where every young person with ambition can access the education they deserve.
‘’Let us engage today not just as participants, but as co-creators of a better, smarter future for higher education financing in Nigeria.”
Ehindero said for the system to be truly effective, there is a need to modernise and streamline how to manage, track, and deliver funds to deserving students.
He said that automating and optimising the NELFUND system would lead to a more transparent, efficient and responsive process for loan applications, approvals and disbursements.
The House committee chairman added: “This is essential for the success of the initiative and will go a long way in ensuring that our students benefit in a timely and accountable manner.
“As members of the House of Representatives Committee on Student Loans, we have been working tirelessly to ensure that the legislative framework supports and facilitates these reforms. However, legislative efforts alone are not enough.
“We need your expertise, your feedback, and your active participation to make sure that we have a system that works for everyone, from the students applying for loans to the institutions managing the funds.
Representative of the National Universities Commission (NUC), Lawal Faruk, described NELFUND as one of the best policies of the Federal Government.
“Our dream is to see NELFUND one day onboard all the students in the country, whether public or private,” he said.
