Federal Government Calls University Vice Chancellors to Discuss Alleged Misappropriation of Student Loan Funds

The Federal Ministry of Education has expressed dismay over reports of unauthorized deductions from student loan accounts disbursed under the Nigerian Education Loan Fund (NELFund) scheme.

In response, the federal government has summoned the Vice Chancellors of several Nigerian universities to an emergency meeting to address the allegations.

According to a statement issued by the Ministry, the meeting, scheduled for May 6, 2025, will bring together the Vice Chancellors of the affected institutions and the Managing Director of NELFund to discuss the matter.

The Ministry’s statement was prompted by a report published by The Guardian Newspaper on April 29, 2025, alleging that some universities had diverted part of the loan funds meant for students.

Minister of Education, Dr. Marut Olatunji Alausa, described the allegations as “very disturbing and extremely concerning,” emphasizing that such financial misconduct, if confirmed, would be a serious breach of trust and policy.

“Any unauthorized deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFund was established,” he said.

The Minister assured that the government would take swift action to address the issue, stressing that good governance remains central to the National Education Sector Reform Initiative (NESRI).

“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately,” he added.

To enforce accountability, the Ministry announced plans to introduce new measures, including a compliance-tracking initiative, a public countdown webpage, and an Annual University Transparency Index in partnership with the Athena Centre. Additionally, training programs will be held for bursars and ICT heads of universities and polytechnics to ensure proper management and openness through a planned open-portal initiative.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) had earlier revealed that only ₦28.8 billion out of the ₦100 billion released to institutions under the student loan scheme had been distributed to students, with approximately ₦71.2 billion potentially misappropriated. Officials from the Central Bank of Nigeria and senior executives of NELFund have also been invited to provide documentation and clarifications as part of the ongoing investigation.

The Federal Government has vowed to take decisive action against any individuals or institutions found culpable, with Dr. Alausa emphasizing that “anyone found culpable will face appropriate sanctions.” The government’s commitment to transparency and accountability is a significant step towards ensuring that the NELFund scheme achieves its intended purpose of expanding access to high-quality education for Nigerian students.