ActionAid Nigeria has raised serious concerns about the exploitation of the Nigerian Education Loan Fund (NELFUND), which has led to financial sabotage in over 50 Nigerian tertiary institutions.
The international development organisation condemned the practice of inflating fees, withholding refunds, and abusing the student loan program, accusing the institutions of undermining students’ trust and betraying the values of equity and social justice that education should promote.
Andrew Mamedu, the Country Director of ActionAid Nigeria, described systematic corruption within these institutions. He pointed out that fee hikes, ranging from N2,500 to N30,000 per student, may seem insignificant but can accumulate into a multi-million-naira scandal affecting thousands of students.
He described the issue as administrative misconduct and a widespread pattern of corruption that has become normalised within the system.
Mamedu stated that these manipulations have turned what was meant to be a life-saving loan scheme into a tool for exploitation.
He further expressed disappointment that public institutions, which should serve as models of accountability, had turned education into a commodity, causing harm to vulnerable students who had resorted to the loan program out of necessity, not convenience.
ActionAid has called for the immediate suspension of institutional heads involved in the fraud and urged the Minister of Education and President Bola Ahmed Tinubu to intervene if the governing councils fail to act.
The organisation also demanded that those found guilty should face swift dismissal from public office and be prosecuted accordingly.
Mamedu further urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to take decisive legal action beyond mere investigations to address the matter.
Despite the government’s intention to pay institutions directly to prevent such misuse, Mamedu criticised the system’s inability to hold institutions accountable, as they proved incapable of handling the funds correctly. He called for an urgent overhaul to restore integrity to the education loan scheme.
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