The Federal Government has issued a strong warning to tertiary institutions allegedly exploiting the Nigerian Education Loan Fund (NELFUND) by making illegal deductions and charging double fees. The Presidency has vowed to sanction any institution found guilty, following a recent report by The Guardian exposing malpractice in 51 institutions.
In a statement released Wednesday, Sunday Asefon, Senior Special Assistant to President Bola Tinubu on Student Engagement, condemned the actions as fraudulent and a threat to the credibility of the student loan programme.
“These institutions have been found to deduct between ₦20,000 and ₦40,000 from students’ loan disbursements — an action that directly undermines the integrity and purpose of the scheme,” Asefon stated.
The Presidency has called on the EFCC and ICPC to launch thorough investigations in collaboration with the Federal Ministry of Education, aiming to identify and prosecute those responsible.
Beyond financial deductions, some institutions reportedly failed to announce the disbursement of funds to eligible students, raising additional transparency concerns.
To ensure accountability, Asefon proposed the formation of a monitoring committee comprising representatives from the Ministry of Education, NELFUND, student bodies, and his office.
“The Presidency remains committed to making sure students receive the full benefit of the NELFUND scheme, and those found culpable will face the full weight of the law,” he added.
The controversy has sparked nationwide reactions, with advocacy groups and student leaders calling for urgent reforms and stricter oversight.
