ABUJA, Nigeria – The Nigerian Presidency has issued a stern warning to tertiary institutions allegedly exploiting the Nigerian Education Loan Fund (NELFUND) by making unauthorised deductions and demanding double payments from beneficiaries of the federal student loan scheme.
In a strongly worded statement issued Wednesday, April 30, 2025, in Abuja, the Senior Special Assistant to the President on Student Engagement, Sunday Asefon, described the reported actions by 51 implicated institutions as a “grave threat” to President Bola Ahmed Tinubu’s agenda of inclusive access to education.
A recent Guardian investigation revealed that several higher education institutions have been deducting between N20,000 and N40,000 from students’ loan disbursements—without authorisation.
Some institutions were also accused of concealing the disbursement of funds from eligible students, thus undermining the transparency of the programme.
“These illegal deductions… directly undermine the integrity and purpose of the student loan scheme,” Asefon said.
“If left unchecked, these practices could destroy public confidence in a critical policy pillar of the Renewed Hope agenda.”
The Presidency has called on Nigeria’s anti-graft bodies—the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC)—to launch investigations into the fraudulent practices.
Asefon urged the Federal Ministry of Education to collaborate with the anti-corruption agencies to identify and prosecute any culpable institutions or individuals.
“We demand a full investigation into the matter and expect sanctions to be applied where necessary to deter other institutions from sabotaging this initiative,” he said.
To prevent further abuse of the NELFUND scheme, the Presidency is also advocating the establishment of a multi-stakeholder monitoring committee.
The committee would include:
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Officials from the Federal Ministry of Education
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Representatives of the Nigerian Education Loan Fund (NELFUND)
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Student union leaders
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The Office of the Senior Special Assistant to the President on Student Engagement
The committee will be tasked with enforcing compliance, ensuring transparency in disbursement, and swiftly addressing student complaints.
The student loan programme, a flagship policy under President Tinubu’s Renewed Hope Agenda, was introduced to remove financial barriers to tertiary education by offering interest-free loans to qualified Nigerian students.
The Presidency emphasised that any attempt to exploit the system is not just a betrayal of public trust but a direct attack on the future of Nigerian youth.
“The Presidency, through my office, remains committed to ensuring that students receive the full benefit of the NELFUND scheme,” Asefon said.
“Those found culpable of fraudulent deductions will face the full weight of the law.”
