FG Probes Illegal Deductions from Student Loans by 51 Tertiary Institutions ‎

The Federal Ministry of Education has launched an investigation into reports of illegal deductions from student loans by several tertiary institutions across the country.

‎The probe follows allegations that some universities and polytechnics have been making unauthorised deductions from the Nigerian Education Loan Fund (NELFUND), collecting double fees from both the fund and the students, and refusing to issue refunds.

‎In a statement, the Ministry’s spokesperson, Boriowo Folasade, disclosed that the Minister of Education, Dr. Maruf Olatunji Alausa, expressed deep concern over the reports, describing the situation as “very disturbing and extremely concerning.”

‎According to the Minister, any such unauthorised deductions not only violate financial ethics but also threaten the core objectives of the NELFUND scheme. “If proven true, these actions amount to a gross violation of public trust and a betrayal of the government’s commitment to equitable access to education,” he stated.

‎As part of the response, the Ministry has summoned an urgent meeting on Tuesday, May 6, 2025, involving the Vice-Chancellors of the implicated institutions and the Managing Director of NELFUND. The goal of the meeting is to conduct a thorough investigation, ensure accountability, and reiterate the Ministry’s zero-tolerance stance on financial malpractice in the education sector.

‎To strengthen oversight, the Ministry will collaborate with the Athena Centre to launch a compliance-tracking initiative and a countdown webpage aimed at monitoring transparency among institutions. An Annual University Transparency Index will also be introduced to foster accountability and raise the global standing of Nigerian universities.

‎Furthermore, a specialized training program is being planned for Bursars and ICT Heads from universities and polytechnics. This will focus on the development and maintenance of an open-portal initiative to promote transparency in fund disbursement and usage.

‎The Minister reaffirmed the federal government’s unwavering commitment to safeguarding public funds and ensuring that all eligible students receive the full benefits of government-backed education support schemes.

‎It was revealed that no fewer than 51 institutions are involved in the illegal deductions, allegedly charging between N3,500 and N30,000 per student from funds disbursed through NELFUND.

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