The Federal Government has summoned Vice Chancellors of Nigerian universities implicated in alleged unauthorized deductions and possible diversion of student loan funds. The emergency meeting, scheduled to hold on May 6, 2025, also includes the Managing Director of the Nigerian Education Loan Fund (NELFUND) and top officials from the Ministry of Education.
The move follows reports that about 51 tertiary institutions have made questionable deductions from institutional fees paid through the federal student loan scheme. In some cases, amounts ranging from ₦3,500 to ₦30,000 were allegedly removed per student, prompting public outcry and calls for accountability.
Minister of State for Education, Dr. Yusuf Sununu, described the situation as deeply troubling, noting that such practices undermine the Federal Government’s objective of providing accessible and interest-free education financing for underprivileged Nigerian students. “These allegations are not only disturbing, they are an outright affront to the principles of transparency and fairness that the student loan scheme was built upon,” Dr. Sununu stated.
In response, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched an investigation to determine whether the deductions were illegal or constituted diversion of public funds. However, the anti-corruption agency clarified that it has not yet established any conclusive evidence of wrongdoing and pledged to follow due process. “We are conducting a preliminary review, and we have not found any material discrepancies as of now,” an ICPC official said, adding that the agency does not engage in media trials or preemptive indictments.
Meanwhile, NELFUND has strongly denied the allegations, insisting that its system is fully automated, transparent, and closely monitored. According to a statement by the Fund, tuition fees are paid directly to accredited institutions, while stipends meant for students are transferred into verified individual accounts. “There is no room for mismanagement, theft, or unaccounted funds within the current framework. Every transaction is timestamped and digitally logged to eliminate human interference,” the agency said.
In a swift move to prevent future abuse, the Ministry of Education announced the rollout of a compliance tracking initiative in partnership with the Athena Centre. The initiative includes an Annual University Transparency Index and open-portal systems to promote institutional accountability. Furthermore, training programmes are being organised for bursars and ICT heads to ensure compliance with best practices.
The Federal Government reiterated its commitment to the integrity of the student loan scheme and warned that any institution found culpable after investigations will face the full weight of the law. The student loan programme, which forms part of President Bola Tinubu’s Renewed Hope Agenda, aims to provide financial relief to students from low-income families and increase access to tertiary education.
As stakeholders prepare for the high-level meeting on Monday, many Nigerians will be watching closely to see how the government handles what could become a major test of transparency and trust in the nation’s education financing system.
