By Emmanuella Oghenetega
ActionAid Nigeria, a Non-Governmental Organisations, civil society organisation, and an affiliate member of the ActionAid International Federation has expressed infuriation by revelations of systemic exploitation of the Nigerian Education Loan Fund (NELFUND) scheme.
In a statement signed by Andrew Mamedu, the Country Director of ActionAid Nigeria, it was revealed that over 50 tertiary institutions across the country has been accused of inflating fees, withholding refunds, and financially sabotaging students who sought relief through the student loan programme.
An action, which is not merely a misconduct by the administration; it is corruption in education institutions at its core.
According to the Country Director, these institutions have not only betrayed public trust but have actively undermined the very ideals of transparency, equity, and social justice that education should embody. Fee hikes ranging from N2,500 to N30,000 per student may seem trivial on paper, but when calculated across tens of thousands of students, this abuse snowballs into a multi-million-naira scandal.
From ActionAid Nigeria’s conversations with students, this is seemingly not an isolated incident. It is a coordinated, normalised pattern of corruption.
“This scandal is a brutal reminder that when institutions lose their soul, students become collateral damage. These are young Nigerians who turned to the government’s loan scheme out of desperation not convenience and what they got in return was exploitation.
“Institutions entrusted with both academic and moral leadership have shamelessly commodified education. ActionAid Nigeria demands the immediate investigation and suspension of all institutional heads complicit in this fraud by their respective Governing Councils and calls on the Minister of Education and President Bola Ahmed Tinubu not to remain silent or passive where these Councils fail to act decisively.
“If eventually found guilty, they must be dismissed from public service and prosecuted without delay. We also call on the EFCC and ICPC to move beyond mere observation or investigation and take decisive legal action.”
The Country Director noted, “One would have thought that paying institutions directly was the more efficient and secure route to minimise risks of student misuse and ensure timely tuition payments. But once again, these public institutions have proven incapable of individual and institutional accountability, turning a system built for support into one ripe for exploitation.
“While ActionAid Nigeria commends NELFUND and the National Orientation Agency (NOA) for taking the bold step of naming institutions involved in the mismanagement of student loan funds, naming alone is not justice. We urge that NELFUND and the Federal Ministry of Education immediately conduct independent forensic audits of all implicated schools; mandate public disclosure of how funds were received and used; ensure full refunds to all affected students; and establish student-led monitoring mechanisms to prevent future misuse.”
ActionAid Nigeria also urged, that the National Orientation Agency (NOA) and the Federal Ministry of Education step up nationwide awareness campaigns so that students are not kept in the dark about the loans they have received, the institutions that benefited, and the rights they must now reclaim.
He further stated, “This is about more than just student loans. We must strive to build a nation where dignity, fairness, and equal access to opportunities, services, and resources are non-negotiable. We also join our voices with activists, civil society, and concerned citizens in demanding that this scandal not be buried under bureaucracy.”
…Education Minister To Probe Institutions Involved In Alleged NELFund Exploitation
Meanwhile, in response to reports published by media organization, alleging some Nigerian universities to have made unauthorized deductions from funds disbursed under the Nigerian Education Loan Fund (NELFund) scheme, the Minister of Education, Dr. Maruf Olatunji Alausa, has described the allegations as “very disturbing and extremely concerning,”
In a statement signed by Boriowo Folasade,
Director, Press & Public Relations, the Minister emphasized that any unauthorized deductions from student loans not only breach financial ethics but also undermines the very foundation upon which NELFund was established.
He stated that 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 is convening an urgent meeting on May 6, 2025, with the Vice Chancellors of the affected universities and the Managing Director of NELFund. The meeting will aim to thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.
To reinforce this effort, the Ministry, in collaboration with the Athena Centre, will launch a compliance-tracking initiative and a countdown webpage to monitor institutional transparency. They will also offer technical assistance and introduce an Annual University Transparency Index to promote accountability and enhance the global relevance of Nigerian universities.
Additionally, a training program will be organized for Bursars and ICT Heads of universities and polytechnics on the development and maintenance of an open-portal initiative.
“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. Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions.”
Dr. Alausa further emphasized that President Bola Ahmed Tinubu, who established NELFund as a flagship initiative, made adequate budgetary provisions to support both students and institutions in a fair and transparent manner.
“NELFund was created to expand students’ access to high quality education and to support universities financially in a legal and sustainable way. Any attempt to exploit this fund is unacceptable and contradicts the President’s vision for inclusive human capital development.”
The Minister reaffirmed the administration’s commitment to protecting public funds and ensuring that students receive the full benefits of all government education support schemes.
