The Federal Government has vowed to sanction tertiary institutions allegedly involved in the fraudulent deduction of funds from the recently disbursed student loans under the Nigerian Education Loan Fund (NELFUND).
The crackdown was announced on Wednesday by the Senior Special Assistant to President Bola Tinubu on Student Engagement, Comrade Asefon Sunday Dayo, following reports that several institutions had illicitly deducted between ₦20,000 and ₦40,000 from student loan payments.
According to Asefon, no fewer than 51 institutions are currently implicated in the scandal. He described the deductions as “unauthorised, exploitative, and a betrayal of public trust,” stressing that the actions undermine the core objective of the student loan programme — to provide inclusive access to education and financial relief for students and their families.
“The loan is designed to support students, not enrich school administrators. These deductions violate the spirit and integrity of the NELFUND initiative,” Asefon stated.
He further revealed that some institutions have also failed to publicly announce the disbursement of the funds, limiting transparency and student access.
In response, the Presidency, in coordination with the Federal Ministry of Education, will launch a comprehensive monitoring and enforcement framework. This includes:
The formation of a Monitoring Committee to oversee compliance.
Collaboration with anti-graft agencies like the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC).
Full investigations into all reported cases, with sanctions against culpable institutions and individuals.
Asefon reaffirmed the Tinubu administration’s commitment to educational equity and institutional accountability, promising that any institution found complicit will be held responsible to prevent further abuse of the system.
The student loan scheme, one of President Tinubu’s flagship social intervention programmes, was established to ease the financial burden of higher education on Nigerian families and improve national human capital development.
