Federal Gov’t Summons Indicted VCs, NELFUND Over Alleged Student Loan Fraud

The Federal Government has summoned Vice Chancellors of affected universities and the Managing Director of the Nigerian Education Loan Fund (NELFUND) to an emergency meeting scheduled for May 6, 2025, following disturbing allegations of unauthorised deductions from student loans.

The Minister of Education, Dr. Maruf Olatunji Alausa, described the situation as extremely concerning, vowing that the government would leave no stone unturned in its quest to uphold transparency, protect public funds, and ensure students receive the full benefits of the loan scheme.

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A press statement by Director, Press and Public Relations of the Ministry, Boriowo Folasade, said the Federal Ministry of Education has received with deep concern a media report alleging that some Nigerian universities made unauthorised deductions from funds disbursed under the NELFUND scheme.

The Minister stated that if proven true, such actions would constitute a gross violation of public trust and a betrayal of the government’s commitment to equitable access to education.

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“In response, the Ministry is convening an urgent meeting on May 6, 2025, with the Vice Chancellors of the affected universities and the Managing Director of NELFUND. The meeting will aim to thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.

“To reinforce this effort, the Ministry, in collaboration with the Athena Centre, will launch a compliance-tracking initiative and a countdown webpage to monitor institutional transparency. They will also offer technical assistance and introduce an Annual University Transparency Index to promote accountability and enhance the global relevance of Nigerian universities,” the statement said.

Additionally, it said a training programme will be organised for Bursars and ICT Heads of universities and polytechnics on the development and maintenance of an open-portal initiative.

“As part of our National Education Sector Reform Initiative (NESRI), governance remains the top pillar of our agenda,” Dr. Alausa said.

“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately. Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions.”

Dr. Alausa further emphasised that President Bola Tinubu, who established NELFUND as a flagship initiative, made adequate budgetary provisions to support both students and institutions in a fair and transparent manner.

“NELFUND was created to expand students’ access to high-quality education and to support universities financially in a legal and sustainable way. Any attempt to exploit this fund is unacceptable and contradicts the President’s vision for inclusive human capital development.”

The Minister reaffirmed the administration’s commitment to protecting public funds and ensuring that students receive the full benefits of all government education support schemes.