On April 30, 2025, the Presidency issued a stern warning to 51 tertiary institutions implicated in unauthorised deductions from student loans disbursed under the Nigerian Education Loan Fund (NELFUND) scheme.
The institutions allegedly deducted between N20,000 and N40,000 from students’ loan disbursements, actions deemed fraudulent and detrimental to the integrity of the student loan program.
Sunday Asefon, Senior Special Assistant to the President on Student Engagement, condemned these practices, stating they undermine President Bola Tinubu’s commitment to inclusive education.
He called on the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to collaborate with the Federal Ministry of Education to investigate and sanction the culpable institutions.
Further investigations revealed that some institutions failed to inform students about loan disbursements made on their behalf while still demanding payment of institutional fees.
NELFUND’s Managing Director, Akintunde Sawyerr, described these actions as unethical and a direct violation of the fund’s principles, warning that legal action would be taken against any institution found engaging in such deceptive practices.
To address these issues, the Presidency proposed establishing a monitoring committee comprising representatives from the Federal Ministry of Education, NELFUND, student bodies, and the office of the Senior Special Assistant to the President on Student Engagement.
This committee would oversee compliance by all tertiary institutions and ensure transparency in the disbursement and utilisation of student loans.
The student loan scheme, a flagship initiative of President Tinubu’s administration, aims to provide financial support to students across Nigeria.
In August 2024, the EFCC released N50 billion from recovered proceeds of crime to NELFUND, following the President’s directive to bolster the student loan program.
The fund is committed to utilising these resources equitably and efficiently to benefit the nation’s youth.
The Presidency reaffirmed its dedication to ensuring that students receive the full benefits of the NELFUND scheme and that institutions engaging in fraudulent deductions face the full weight of the law.
