The Minister of Education, Dr. Tunji Alausa, has called an emergency meeting with Vice Chancellors of Nigerian universities and the leadership of the Nigerian Education Loan Fund (NELFUND), following disturbing reports of alleged unauthorised deductions and fund diversion from student loan disbursements.
The meeting, scheduled for May 6, comes amid growing public outcry over claims that some universities may have siphoned funds meant for student welfare under the NELFUND scheme.
NELFUND — a flagship initiative of President Bola Ahmed Tinubu’s administration — was launched to democratize access to higher education by providing means-tested loans to students in public tertiary institutions. It also serves as a financial support mechanism for institutions amid shrinking government subventions. The fund forms a key component of the President’s human capital development agenda.
However, recent findings by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have cast a shadow on the fund’s integrity. The anti-corruption agency reported the discovery of billions of naira, meant for NELFUND beneficiaries, which were allegedly diverted by unnamed institutions.
Reacting to the allegations, Minister Alausa described the reports as a “gross violation of public trust,” warning that any proven misconduct would attract stiff consequences.
“These allegations are extremely concerning,” Alausa stated through a release by Boriowo Folasade, Director of Press and Public Relations at the ministry. “If verified, they represent a betrayal of the government’s commitment to equitable education access and will be met with firm sanctions.”
Although no specific universities have been named, the allegations are reportedly widespread enough to warrant a sector-wide investigation.
In response, the Education Ministry is set to introduce far-reaching reforms to tighten oversight and promote institutional transparency. Key among the new measures are:
The launch of a real-time compliance tracking system.
A public-facing countdown webpage to monitor university spending on student loans.
The creation of an Annual University Transparency Index in partnership with policy think tank, Athena Centre.
The ministry will also roll out a nationwide training program for university and polytechnic Bursars and ICT Heads. The training will focus on open-portal systems to ensure transparent and accountable student loan fund management.
“These reforms are part of our National Education Sector Reform Initiative (NESRI), where governance is a top priority,” Alausa explained. “We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately.”
Despite recent clarifications by the ICPC and NELFUND dismissing any systemic discrepancies, the ministry insists the matter is far from closed. Alausa emphasized that anyone found guilty of manipulating the fund’s disbursement process would face legal and administrative sanctions.
“NELFUND was created to expand students’ access to high-quality education and support institutions in a legal and sustainable way,” he said. “Any attempt to exploit this fund is unacceptable and contradicts the President’s vision for inclusive human capital development.”
