Tunji Alausa, the education minister, says there were no illegal deductions from student loans disbursed by the Nigerian Education Loan Fund (NELFund).
Reports earlier surfaced alleging significant misappropriation within Nigeria’s student loan scheme.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) said only N28.8 billion in student loan disbursements from NELFund reached students out of N100 billion allocated for the purpose, leaving N71.2 billion unaccounted for.
ICPC’s preliminary probe said institutions received the funds, but a substantial portion did not benefit the intended recipients.
NELFund, on its part, refuted allegations of misappropriation and mismanagement of student loan funds.
But it had accused some unnamed tertiary institutions of colluding with banks to shortchange student loan applicants.
The ICPC’s special task force questioned key stakeholders, including NELFund, the director general of the budget office, the accountant general of the federation, central bank officials, and public tertiary school administrators on the matter.
Speaking on Wednesday during a meeting with education stakeholders in Abuja, Alausa said findings from official investigations failed the validate speculations about misappropriation of NELFund monies.
The minister said the federal government is introducing reforms to enhance efficiency, clarity, and transparency.
“We are making a good system better,” Alausa said.
“We owe it to the students and the Nigerian public to ensure full transparency and standardisation.”
The meeting was attended by vice-chancellors of federal universities, the executive secretary of the National Universities Commission (NUC), and the managing director of NELFund.
Alausa said communication lapses between institutions, NELFund, and students were responsible for the confusion.
He announced the formation of a high-level committee to harmonise the naming of university charges, many of which he said are often mistaken for hidden deductions from the loans.
The committee’s mandate includes developing a unified disbursement timeline, setting notification deadlines for institutions and students, and introducing a comprehensive communication framework.
The framework will require both institutions and NELFund to inform students of loan statuses via SMS, email, and phone calls.
Alausa reiterated that tertiary education in Nigeria remains tuition-free but said other legitimate institutional charges must be clearly defined and justified.
“We are putting an end to ambiguity,” he added.
“Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions.
“NELFund was created to expand students’ access to quality education and to support universities financially.
“Any attempt to exploit this fund is unacceptable.”
