Presidency To Sanction Tertiary Institutions Over Alleged Student Loan Fraud

The Federal Government, through the Office of the Senior Special Assistant to the President on Student Engagement, has initiated a crackdown measure on tertiary institutions reportedly implicated in fraudulent activities related to student loans.

Senior Special Assistant to the President Bola Tinubu on Student Engagement, Comr. Asefon Sunday Dayo, stated this in a press statement on Wednesday.

Asefon, responding to the alleged alarming reports of unauthorised deductions from the Nigerian Education Loan Fund (NELFUND) student loans by authorities of various tertiary institutions across the country, vowed to investigate all cases of unauthorised deductions.

A recent report revealed that no fewer than 51 institutions were currently implicated in this scandal.

It stated that these institutions have been found to deduct between ₦20,000 and ₦40,000 from students’ loan disbursements—an action that is not only fraudulent but also directly undermines the integrity and purpose of the student loan scheme, according to Asefon.

“These illegal deductions, coupled with the refusal by some institutions to publicly announce the disbursement of funds to eligible students, represent a grave threat to the credibility of the NELFUND programme,” he said.

The presidential aide added that such practices also cast a shadow on the goodwill and commitment of President Bola Tinubu, whose administration established the scheme to ensure inclusive access to education and relief for Nigerian parents.

“The intent of the loan is to support students, not to become an avenue for exploitation by school authorities,” he asserted.

In light of these developments, he said his office, in collaboration with the Minister of Education, shall roll out a monitoring measure with sanction in the coming days.

Asefon said this includes the establishment of a Monitoring Committee to oversee compliance by all tertiary institutions, and the commissioning of anti-graft agencies such as the EFCC and ICPC, in collaboration with the Ministry of Education, to investigate all reported cases of unauthorised deductions.

They will also identify culpable institutions and officials, and ensure that appropriate sanctions are applied to deter further abuse.