NELFUND Under Fire For Disbursing Loans To Ex-Students

The Nigeria Education Loan Fund (NELFUND) has faced mounting criticism after several graduates revealed that they received student loans and upkeep stipends months after completing their studies.

According to Daily Punch, some affected individuals shared how they applied for the student loan scheme before graduation but experienced prolonged delays in disbursement. To their surprise, the loans were eventually paid long after they had independently settled their tuition and left their respective institutions.

“I registered for NELFUND when I desperately needed funds to pay my second-semester final year fees. But the approval didn’t come in time, so I sourced the money myself and paid the school. I eventually graduated, only to later discover via my student portal that NELFUND had paid my fees in full,” said one graduate. “I contacted them and was told to request a refund from the school. But how do I request a refund for a fee I’ve already paid and when I’m no longer a student?”

He added, “I also keep receiving upkeep money despite informing them I’ve graduated. When repayment begins, I’ll return the upkeep funds. But I will not repay the institutional fee, they paid it after I had already graduated and settled my dues.”

Another graduate from the University of Benin (UNIBEN) voiced a similar experience. “I applied for the loan in my final days as a 400-level student. I waited for months but had to pay the fees myself before my final exams. Last month, I suddenly got a N20,000 upkeep payment and discovered my loan had just been approved—months after graduation. NELFUND is handling this poorly. Why are you disbursing loans to graduates? This shows serious inefficiency in the system.”

Parents have also raised the alarm. Mr Ibrahim, father of a recent graduate, said his son continued to receive upkeep payments despite completing his studies two months ago. “He was shocked when he got the alert. We don’t know how to stop it. We need help,” he lamented.

The loan scheme, introduced to ease the financial burden on students, is now under scrutiny amid allegations of mismanagement and corruption. According to preliminary findings by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), while NELFUND disbursed N100 billion in loans, only N28.8 billion reached the intended student beneficiaries leaving a staggering N71.2 billion unaccounted for.

The National Orientation Agency (NOA) also raised red flags, alleging that certain institutions and banks conspired to delay payments, creating opportunities for illegal deductions and profiteering. Media reports indicate that deductions ranging from N3,500 to N30,000 were made from student fees under the guise of administrative charges.

In a statement released last Thursday, ICPC spokesperson, Demola Bakare, confirmed that a Special Task Force has begun a full investigation into the alleged irregularities. “The Commission is committed to ensuring transparency and accountability in the disbursement of public funds,” Bakare said.

The National Association of Nigerian Students (NANS) has expressed outrage over the situation and promised to launch nationwide protests. “This is a major discrepancy in the handling of student loan funds. The students deserve better,” a statement from the group read.

The Academic Staff Union of Universities (ASUU) has also weighed in, with its National President, Professor Emmanuel Osodeke, stating, “We are awaiting the result of the investigation, and we hope all those involved will be brought to book.”

Efforts to reach the Director of Corporate Communications at NELFUND, Mr. Oseyemi Oluwatuyi, were unsuccessful, as he did not respond to inquiries at the time of filing this report.