FG Summons Vice Chancellors Over Alleged Diversion of Student Loan Funds.
From Our Correspondent
The Federal Government has summoned Vice Chancellors from several universities and the Managing Director of the Nigeria Education Loan Fund (NELFund) regarding allegations of fund diversion related to the student loan scheme.
A recent report indicated that approximately 51 schools had made unauthorized deductions from student loans under NELFund. This situation has prompted the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to initiate a detailed investigation into these alleged discrepancies.
In response to the allegations, the Federal Ministry of Education announced that it will hold an urgent meeting on May 6, 2025, with the affected university Vice Chancellors and the Managing Director of NELFund.
“The purpose of this meeting is to thoroughly investigate the issue, ensure accountability, and reaffirm the Ministry’s zero-tolerance policy towards financial malpractice within the education sector,” stated the Ministry through its Director of Press and Public Relations, Boriowo Folasade.
The Minister of Education, Olatunji Alausa, described the claims as “very disturbing” and indicated they could represent a significant violation of public trust. “If proven true, such actions would constitute a gross betrayal of the government’s commitment to equitable access to education,” the minister added.
To enhance transparency within the student loan scheme, the Ministry has announced a collaboration with the Athena Centre to launch a compliance-tracking initiative. This will include a countdown webpage designed to monitor university transparency.
Additionally, the Ministry plans to introduce an Annual University Transparency Index, provide technical assistance to institutions, and conduct training programs for university Bursars and ICT Heads to support the development and maintenance of an open portal initiative.
The NELFUND program was officially launched on May 24, 2024, offering interest-free loans to students in tertiary institutions across Nigeria. As of April 2025, the fund has disbursed a total of ₦53.8 billion, which includes ₦30.1 billion for institutional fees and approximately ₦23.6 billion for upkeep allowances.
