The House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing has warned tertiary institutions in Nigeria against violating the guidelines governing the administration of the Nigerian Education Loan Fund (NELFUND). Committee chairman Ifeoluwa Ehindero stated that some beneficiary institutions were not fully complying with the requirements of the student loan scheme. Recent monitoring activities and engagements revealed that some institutions were withholding funds released by NELFUND for verified students.
The committee raised concerns over alleged cases of beneficiary institutions delaying refunds to students who had already paid their tuition fees before disbursement, and making only partial refunds to eligible beneficiaries. Ehindero said such practices could undermine transparency and accountability in the management of the scheme and negatively affect students who are entitled to the funds. The committee emphasized that these actions erode students' confidence in the system and may threaten equitable access to funding for higher education.
Prolonged delays in processing payment notifications and refunds could disrupt students' academic progress and worsen the financial difficulties faced by beneficiaries. The committee urged heads of beneficiary institutions to ensure that their bursars, directors of information and communication technology, and NELFUND desk officers strictly adhere to the financial requirements guiding the management of the funds. Institutions were directed to promptly and fully apply NELFUND funds received on behalf of students for the intended purpose.
The committee warned that institutions found to have deliberately failed to comply with the guidelines could face sanctions under Section 5.6 of the NELFUND Guidelines. Possible sanctions include suspension of offending institutions from the scheme, recovery of funds, and referral to relevant law enforcement and regulatory agencies. Ehindero stated that the committee would continue to exercise its oversight responsibilities and invoke relevant sanctions where deliberate non-compliance is established.
The Nigerian Education Loan Fund (NELFUND) is a Federal Government student loan programme aimed at providing financial support to eligible students. The committee reaffirmed its commitment to ensuring that eligible students receive the financial support provided for their education. To achieve this, the committee will continue to strengthen oversight of the scheme to promote transparency, accountability, and proper management of funds.
According to the committee, some beneficiary institutions have been found to be withholding funds released by NELFUND for verified students. The committee has therefore directed all beneficiary institutions to ensure that NELFUND funds received on behalf of students are promptly and fully applied for the intended purpose. This includes making appropriate refunds where applicable.
The House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing will continue to monitor the situation and take necessary actions to ensure compliance with the guidelines. The committee's efforts aim to ensure that students benefit from the Federal Government's student loan programme as intended.
Key points
- The committee may impose sanctions, including suspension from the scheme and recovery of funds.
