THE Nigerian Education Loan Fund (NELFUND) claims to be revolutionising access to higher education through its student loan programme. However, discrepancies between recent figures it released on its activities and those issued by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have raised concerns about its transparency and accountability.
In its latest report dated April 25, 2025, NELFUND stated that it had disbursed N53.8 billion to students in both institutional fees and upkeep allowance across various beneficiary higher institutions of learning.
While the report did not specify the number of students or institutions that have so far benefited from the loans, NELFUND’s official portal indicated that 271 institutions partnered with the scheme.
A breakdown of N53.8 billion, which the organisation said it disbursed, revealed that N30.17 billion was allocated for institutional fees, while N23.65 billion was earmarked for student upkeep.
However, the ICPC’s investigation of NELFUND’s activities revealed that the total money received by NELFUND was N203.8 billion.
A breakdown of money received by NELFUND shows that “N10 billion was an allocation from the Federation Allocation Account Committee, N50 billion was from the Economic and Financial Crimes Commission, N71.9B was from the Tertiary Education Trust Fund, while another N71.9 billion was also from the same Tertiary Education Trust Fund.”
The ICPC said it found that the total amount disbursed by NELFUND to institutions from inception to date was about N44,200,933,649.00, while 299 institutions benefited from the funds released.
This contradicts the N53.8 billion stated by NELFUND on its portal.
The ICPC also found that 299 institutions had benefited, rather than the 271 reported by NELFUND on its portal.
Allegations of fraudulent deductions by tertiary institutions
These discrepancies were uncovered after a media report surfaced, alleging irregularities in the disbursement of student loans under the NELFUND scheme.
According to a Guardian report, at least 51 tertiary institutions were implicated in illegal deductions from institutional fees.
These institutions were said to have deducted between N3,500 and N30,000 per student from the fees disbursed by NELFUND.
Both NELFUND and the National Orientation Agency (NOA) accused these institutions of deceptive practices, alleging that they collected institutional fees from the government without fully passing them on to students.
The institutions were also accused of a lack of transparency, including failing to disclose disbursement records.
At some of these universities, students reported that additional fees were imposed without clear explanations, while others claimed they were denied refunds for fees paid before NELFUND disbursed the funds.
President Bola Tinubu signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill into law on Wednesday, April 3, 2024, following approval by the Senate on Wednesday, March 20.
Although the Act is touted to ease access to tertiary education for Nigerian students, members of the Academic Staff Union of Universities (ASUU) have continued to describe it as an attempt by the government to abandon public universities’ funding.
Update: The ICPC makes u-turn, saying there was no discrepancy. Read it HERE
Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: umustapha@icirnigeria.com. He tweets @UsmanMustapha_M