The Nigerian Education Loan Fund (NELFUND) has issued a stern warning to tertiary institutions that fail to notify students of disbursements made on their behalf under the federal government’s student loan scheme.
Managing Director of NELFUND, Akintunde Sawyerr, delivered the warning on Thursday during a media briefing in Abuja, condemning what he described as unethical and deceptive practices by some institutions.
According to Sawyerr, findings by the Fund revealed that certain institutions, after receiving loan payments directly from NELFUND to cover students’ institutional fees, have continued to demand payments from the same students, without disclosing that the fees had already been settled. “This act of withholding critical financial information from students is not only unethical but a direct violation of the principles upon which NELFUND was established,” he said.
He noted that some of these institutions have also failed to update their internal records to reflect the payments made through the Fund, thereby creating unnecessary confusion for students already battling financial strain.
Sawyerr did not mince words when he warned that NELFUND would take decisive action against any institution found engaging in such malpractice. “We will not hesitate to take legal action against any institution found engaging in such deceptive practices,” he said.
He restated that the student loan scheme was created to support President Bola Tinubu’s Renewed Hope Agenda and to ensure that no eligible Nigerian is denied access to higher education due to financial hardship. “NELFUND exists to ensure no eligible Nigerian is denied the opportunity to pursue higher education due to lack of funds,” he said.
Sawyerr called for greater collaboration between tertiary institutions and the Fund, urging schools to avoid actions that could sabotage public trust or deny students their rights. “We urge institutions to support this noble cause and avoid actions that could undermine public trust or deny students their rightful support,” he added.
Assuring the public of transparency and accountability, Sawyerr said NELFUND remains committed to ensuring the success of the student loan scheme across Nigeria. As of March 2025, the Fund has disbursed N45.1 billion in student loans, with N29.86 billion covering institutional fees and N15.23 billion paid as upkeep allowances. A total of 525,936 students have registered on the loan platform, with 445,015 successfully receiving financial assistance, representing an 84% success rate.
To further enhance the integrity of the scheme, Sawyerr revealed that NELFUND will soon update its database to detect students who have dropped out but continue to receive upkeep stipends.
