The Federal Ministry of Education has launched an investigation into allegations that some Nigerian universities illegally deducted money from student loans disbursed through the Nigerian Education Loan Fund (NELFund) scheme. This follows a report by The Guardian newspaper on April 29, 2025, claiming that certain institutions were making unauthorized deductions.
Minister of Education, Dr. Maruf Olatunji Alausa, described the report as “very disturbing,” stressing that such practices, if confirmed, would violate financial ethics and betray the purpose of the student loan programme. The NELFund student loan scheme, he said, was designed to support students and promote fairness in access to higher education, not to be manipulated by school administrations.
“To deduct unlawfully from student loans is not only unethical but a betrayal of the public’s trust and the government’s commitment to making education accessible to all,” Alausa said.
To address the allegations swiftly, the Ministry has scheduled an emergency meeting for May 6, 2025. This meeting will include Vice Chancellors of the accused universities and the Managing Director of NELFund. Its aim is to get to the bottom of the matter, demand accountability, and reinforce the government’s zero-tolerance stance on financial misconduct in the education sector.
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In addition, the Ministry announced several new measures to improve transparency. These include a new compliance-tracking system, an Annual University Transparency Index, and the training of bursars and ICT heads on how to maintain open financial portals. These steps are all part of the ongoing National Education Sector Reform Initiative (NESRI).
The Ministry reiterated that NELFund student loans are intended to directly benefit students, with President Bola Ahmed Tinubu making sufficient budgetary allocations to ensure fairness and sustainability in the programme’s rollout.
“Let me assure Nigerians that this issue will not be swept under the carpet,” Dr. Alausa said. “Anyone found guilty will face appropriate sanctions. Every kobo meant for students must be used to support their education and future.”
The missing NELFund student loan claims have stirred public concern, and the Ministry says it is committed to protecting public resources and restoring trust in the education financing system.
