FG probes universities over alleged NELFUND deductions

The Federal Ministry of Education has launched an urgent investigation into allegations that some Nigerian universities illegally deducted money from student loans disbursed under the Nigerian Education Loan Fund (NELFund) scheme.

The probe follows a report by The Guardian published on April 29, 2025, which claimed that certain institutions had made unauthorized deductions from funds meant to support students. Describing the development as “very disturbing and extremely concerning,” the Minister of Education, Dr. Maruf Olatunji Alausa, warned that such actions, if confirmed, would represent a serious breach of public trust and a violation of the principles on which the student loan initiative was built.

“These deductions not only undermine financial integrity but also threaten the core goal of expanding equitable access to higher education,” Dr. Alausa said.

To address the allegations, the Ministry has scheduled an emergency meeting for May 6, 2025, with Vice Chancellors of the implicated universities and the Managing Director of NELFund. The meeting is expected to produce a full-scale investigation into the issue, as well as a reaffirmation of the Ministry’s zero-tolerance stance toward financial malpractice in the education sector.

In addition to the probe, the Ministry announced a series of reforms aimed at strengthening accountability across institutions. In collaboration with the Athena Centre, it will launch a compliance-tracking initiative, a dedicated countdown webpage to monitor transparency, and an Annual University Transparency Index. The reforms will also include technical support for institutions and training programs for university bursars and ICT heads on how to manage an open-portal initiative that ensures real-time accountability.

“As part of our National Education Sector Reform Initiative (NESRI), governance is our number one priority,” Dr. Alausa said. “We are determined to ensure that every kobo allocated for student welfare is used responsibly. There will be consequences for any individual or institution found guilty of misappropriating funds.”

He further emphasized that President Bola Ahmed Tinubu’s administration established NELFund not only to provide financial relief to students, but also to support universities transparently and sustainably.

“President Tinubu’s vision is clear—no Nigerian student should be denied access to quality education due to financial constraints. Any attempt to exploit this initiative is a betrayal of that vision,” the Minister added.

The Education Ministry assured the public that the investigation will be thorough and that anyone found culpable will be held accountable.