The House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing has warned universities and other beneficiary institutions against misusing funds disbursed under the Federal Government’s student loan scheme. Committee chairman Ifeoluwa Ehindero stated this after monitoring activities and engagements with beneficiary institutions. Some institutions have failed to properly administer funds released by the Nigerian Education Loan Fund for verified student beneficiaries.
Ehindero disclosed that some institutions withheld NELFUND funds meant for students, delayed refunds to students who had already paid their tuition before the fund’s disbursement, or refunded only part of the amount due to eligible beneficiaries. These practices raise concerns about compliance with the rules governing the loan scheme’s administration. The committee is concerned that such actions erode students’ confidence in the system and may threaten equitable access to funding for higher education.
The committee identified instances of institutions delaying refunds to students who had paid tuition fees before NELFUND disbursements. Prolonged delays in processing payment notifications and refunds disrupt academic progress and compound the financial hardship faced by affected students. Ehindero urged heads of beneficiary institutions to ensure compliance with financial and administrative requirements for managing funds released under the scheme.
Ehindero directed institutions to refund students who had already paid their fees before NELFUND disbursed funds. The committee warned that institutions found deliberately refusing to comply with the scheme’s requirements could face sanctions, including suspension from the scheme, recovery of funds, and referral to law enforcement and regulatory agencies. Section 5.6 of the NELFUND Guidelines provides for these measures.
The committee will intensify oversight of beneficiary institutions to strengthen enforcement, improve transparency in handling student loan funds, and ensure greater accountability within the scheme. The oversight aims to ensure that the Federal Government’s efforts to make higher education more accessible and affordable are not undermined by administrative failures at the institutional level.
Student complaints about delays in receiving refunds for tuition fees they paid before NELFUND disbursements prompted the committee’s warning. In May, some University of Calabar students raised concerns over delayed refunds, although the institution stated that the process was ongoing. The university’s NELFUND desk officer said refunds were being made in batches, with about 3,000 students refunded at the time.
NELFUND is the Federal Government’s student financing scheme, established to provide eligible Nigerian students with zero-interest loans to support their education. The scheme replaced the former Nigerian Education Bank Act and is a core initiative of President Bola Tinubu’s administration. The committee’s warning emphasizes the importance of proper administration of student loan funds to ensure that financial hurdles do not prevent young Nigerians from accessing tertiary education.
Key points
- Institutions must ensure prompt and full application of NELFUND funds for the purposes they were released.
- The committee will intensify oversight to strengthen enforcement and improve transparency in handling student loan funds.
- Institutions found deliberately refusing to comply with the scheme’s requirements could face sanctions.
