We found no evidence of deductions from student loans by tertiary institutions – FG
Minister of Education, Tunji Alausa, has said there are no unauthorised deductions from student loans disbursed by the Nigerian Education Loan Fund (NELFund).
Recent reports had alleged significant misappropriation within the process of executing NELFund.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) said only N28.8 billion in student loan disbursements from NELFund reached students out of N100 billion allocated for the purpose, leaving N71.2 billion unaccounted for.
ICPC’s preliminary probe said institutions received the funds, but a substantial portion did not benefit the intended recipients.
NELFund, on its part, debunked allegations of misappropriation and mismanagement of student loan funds.
But it had accused some unnamed tertiary institutions of colluding with banks to shortchange student loan applicants.
The ICPC’s special task force questioned key stakeholders, including NELFund, the director general of the budget office, the accountant general of the federation, central bank officials, and public tertiary school administrators on the matter.
Speaking on Wednesday during a meeting with education stakeholders in Abuja, Alausa stated that findings from official investigations failed the validate speculations about misppropriation of NELFund monies.
The minister said the federal government is introducing reforms to enhance efficiency, clarity, and transparency.
“We are making a good system better,” Alausa said.
“We owe it to the students and the Nigerian public to ensure full transparency and standardisation.”
The meeting was attended by vice-chancellors of federal universities, the executive secretary of the National Universities Commission (NUC), and the managing director of NELFund.
Alausa said communication lapses between institutions, NELFund, and students were responsible for the confusion.
He announced the formation of a high-level committee to harmonise the naming of university charges, many of which he said are often mistaken for hidden deductions from the loans.
The committee’s mandate includes developing a unified disbursement timeline, setting notification deadlines for institutions and students, and introducing a comprehensive communication framework.
The framework will require both institutions and NELFund to inform students of loan statuses via SMS, email, and phone calls.
Alausa reiterated that tertiary education in Nigeria remains tuition-free but said other legitimate institutional charges must be clearly defined and justified.
