The Federal Ministry of Education has said it has opened a discreet investigation into alleged illegal deductions from students loan by some tertiary institutions.
The report comes two days after the April 29 report of The Guardian alleging unauthorised deductions from student loans, double institutional fees collection from NELFUND and students and refusal by the institutions to refund to students.
The spokesperson of the Ministry, Boriowo Folasade, in a statement, revealed that the Minister of Education, Dr Tunji Alausa has expressed concern over The Guardian report.
He disclosed that the Minister summoned a meeting with the affected Vice-Chancellors and the Nigerian Education Loan Fund (NELFUND) for Tuesday, May 6, 2025.
“The Federal Ministry of Education has received with deep concern a report published by The Guardian Newspaper on Tuesday, April 29, 2025, alleging some Nigerian universities to have made unauthorized deductions from funds disbursed under the Nigerian Education Loan Fund (NELFund) scheme,” he said.
“The Honourable Minister of Education, Dr. Maruf Olatunji Alausa, described the allegations as “very disturbing and extremely concerning,” emphasizing that any unauthorized deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFund was established. He stated that if proven true, such actions would constitute a gross violation of public trust and a betrayal of the government’s commitment to equitable access to education.
“In response, the Ministry is convening an urgent meeting on May 6, 2025, with the Vice Chancellors of the affected universities and the Managing Director of NELFund.
“The meeting will aim to thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.
“To reinforce this effort, the Ministry, in collaboration with the Athena Centre, will launch a compliance-tracking initiative and a countdown webpage to monitor institutional transparency.
“They will also offer technical assistance and introduce an Annual University Transparency Index to promote accountability and enhance the global relevance of Nigerian universities.
“Additionally, a training program will be organized for Bursars and ICT Heads of universities and polytechnics on the development and maintenance of an open-portal initiative.”
The Minister reaffirmed the administration’s commitment to protecting public funds and ensuring that students receive the full benefits of all government education support schemes.
The Guardian reported that no fewer than 51 institutions have been fingered in illegal deductions and attendant exploitation of the loan scheme.
The report also learnt that the errant institutions make between N3,500 and N30,000 off each student’s institutional fee that was submitted and received from NELFUND.
