The Federal Ministry of Education has launched an investigation into allegations that some Nigerian universities made illegal deductions from funds disbursed under the Nigerian Education Loan Fund (NELFUND) scheme.
In a press release issued on Thursday, May 1, and signed by Mrs Boriowo Folasade, Director of Press and Public Relations, the Ministry said it had received report by the media “with deep concern.”
Reacting to the claims, the Minister of Education, Dr Maruf Olatunji Alausa, expressed serious concern over what he described as “very disturbing and extremely concerning” developments.
“Any unauthorised deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFund was established,” he said.
“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 has called for an emergency meeting scheduled for May 6, 2025. It will involve the Vice Chancellors of the affected universities and the Managing Director of NELFUND.
The goal, according to the Ministry, is to “thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.”
To strengthen transparency, the Ministry also announced a series of reforms, including a new compliance-tracking initiative developed in partnership with the Athena Centre.
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This initiative will feature a public countdown webpage to monitor university transparency, as well as an “Annual University Transparency Index” to rate institutions based on financial accountability.
Further, the Ministry will train university and polytechnic bursars and ICT heads on how to build and maintain open financial portals, aimed at ensuring real-time oversight of funds.
“As part of our National Education Sector Reform Initiative (NESRI), governance remains the top pillar of our agenda,” Dr Alausa said.
“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately.”
He added, “Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions.”
Dr Alausa reaffirmed that the NELFUND scheme, established by President Bola Ahmed Tinubu, was fully funded to support both students and institutions transparently.
“NELFund was created to expand students’ access to high-quality education and to support universities financially in a legal and sustainable way,” he said.
“Any attempt to exploit this fund is unacceptable and contradicts the President’s vision for inclusive human capital development.”
The Ministry concluded by pledging its full commitment to ensuring students receive every naira of their entitlements and that public trust in the system is protected.