The House of Representatives has mandated all tertiary institutions across Nigeria to refund tuition fees paid by students before receiving disbursements from the Nigerian Education Loan Fund (NELFUND).
This move comes amid concerns over fraudulent practices in the disbursement process.
The directive was part of an urgent motion sponsored by Aliyu Mustapha Abdullahi, the member representing Ikara Kubau Federal Constituency in Kaduna State, during a plenary session on Tuesday.
Abdullahi called for an investigation into reports of mismanagement, highlighting “lack of proper verification” and the “upload of inflated school fees on the NELFUND portal” as major issues affecting the programme’s integrity.
While calling for transparency and accountability, Mr Abdullahi commended the Federal Government for the strides made in student loan accessibility.,
“Significant progress has been made in the programme so far, with over half a million applicants and the disbursement of over N54 billion to beneficiaries across the country,” he said.
Call for technology-driven reforms
Following the adoption of the motion, the House urged NELFUND to adopt advanced IT solutions to enhance the verification processes and streamline the loan disbursement system.
This is aimed at reducing fraud and improving the efficiency and fairness of the loan allocation.
The House further directed NELFUND to report any violations by institutions to the relevant authorities and ensure strict sanctions are applied to schools found contravening the Student Loan Access Act or NELFUND guidelines.
What you should know
The investigation into alleged fraud in the disbursement of student loans by the Nigerian Education Loan Fund (NELFUND) began with a probe initiated by the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
- The commission launched a comprehensive inquiry after reports surfaced suggesting that 51 tertiary institutions were involved in unauthorized deductions from student loans.
- The commission noted that despite the Federal Government’s release of N100 billion for the program, only N28.8 billion had been disbursed directly to students, leaving an unaccounted balance of N71.2 billion.
- In response to these allegations, NELFUND publicly denied any mismanagement or unaccounted funds within its current student loan scheme.
- The Fund clarified that the reported discrepancies referred to pre-existing education financing programs that predate NELFUND’s operational commencement in 2024.
It further explained that under the current system, tuition fees are paid directly to verified institutions, while allowances are disbursed to authenticated student accounts, with all transactions tracked digitally.
