The Minister of Education, Tunji Alausa, has vehemently refuted claims of illegal deductions from student loans disbursed by the Nigerian Education Loan Fund (NELFund).
News360 Info reports that this comes after allegations surfaced about significant mismanagement and misappropriation of funds allocated for student loans in Nigeria.
Reports earlier this week claimed that out of the ₦100 billion allocated to the Nigerian Education Loan Fund, only ₦28.8 billion reached the intended students, with the remaining ₦71.2 billion unaccounted for.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) conducted an initial investigation, revealing that while educational institutions had received the funds, a large portion did not benefit the intended student recipients.
However, NELFund has strongly denied these allegations, stating that no funds were misappropriated, but accusing certain unnamed tertiary institutions of colluding with banks to shortchange student loan applicants.
Speaking on Wednesday in Abuja during a meeting with key education stakeholders, including vice-chancellors of federal universities, the executive secretary of the National Universities Commission (NUC), and the managing director of NELFund, Alausa clarified that official investigations had not substantiated the allegations of misappropriation.
“We are making a good system better,” Alausa stated.
“We owe it to the students and the Nigerian public to ensure full transparency and standardisation,” he added, emphasising that the federal government is introducing reforms to enhance the efficiency, clarity, and transparency of the student loan system.
The minister also pointed to communication lapses between universities, NELFund, and students as the root cause of the confusion surrounding the loan disbursements.
In a bid to tackle these challenges, Alausa announced the formation of a high-level committee tasked with harmonising university charges, which some students mistakenly believed were hidden deductions from their loans.
The committee will also work on establishing a unified disbursement timeline, setting clear deadlines for notifications to both institutions and students, and introducing a comprehensive communication framework.
This framework will require institutions and NELFund to inform students of their loan statuses through SMS, email, and phone calls.
Alausa reaffirmed that tertiary education in Nigeria remains tuition-free but emphasised that legitimate charges from universities must be clearly defined and justified.
He said, “We are putting an end to ambiguity,” and assured Nigerians that no stone would be left unturned in ensuring accountability.
“We will ensure that this matter is not swept under the carpet. Anyone found culpable will face appropriate sanctions,” Alausa concluded, stressing that NELFund was created to expand access to quality education and financially support universities, and any exploitation of the fund would not be tolerated.
