The Federal Ministry of Education has begun a formal investigation into alleged illegal deductions made by some Nigerian universities from the Nigerian Education Loan Fund (NELFund). This action comes after a report published by The Guardian Newspaper on Tuesday, April 29, 2025, raised serious concerns about possible financial misconduct in the administration of the student loan scheme.
Dr. Maruf Olatunji Alausa, the Honourable Minister of Education, described the claims as disturbing and warned that such actions threaten the purpose of the NELFund. He explained that unauthorised deductions from student loans could discourage eligible students from applying for support, damage public trust, and harm the education sector’s image.
To address the issue quickly, the Ministry has scheduled a meeting on May 6, 2025. This meeting will bring together Vice Chancellors from the implicated universities and the Managing Director of NELFund. The goal is to investigate the allegations, ensure accountability, and make clear that the Ministry does not tolerate financial misconduct.
To improve financial transparency in universities, the Ministry is partnering with the Athena Centre to launch a compliance-monitoring initiative. This includes a public countdown webpage to track efforts in real time. The initiative will also introduce an Annual University Transparency Index aimed at boosting trust, encouraging digital transformation, and increasing the global competitiveness of Nigerian universities.
As part of the plan, a nationwide training program will be offered to university and polytechnic Bursars and ICT Heads. This training will help institutions maintain open financial portals and apply modern digital tools for transparent reporting. These steps align with the Federal Government’s education reform priorities and are key to improving how institutions manage public funds.
Dr. Alausa confirmed that NELFund is a central part of President Bola Ahmed Tinubu’s education agenda. The fund was designed to give students across Nigeria access to affordable and high-quality education. He stressed that all disbursed funds must be used lawfully and directly benefit students.
Any misuse of these education loans, he warned, will be addressed firmly. Institutions and individuals found guilty of financial abuse will face proper sanctions.
Also Read: NELFUND Update: How Beneficiaries Can Verify Their Disbursement Status
The government’s focus remains on supporting students through honest, transparent, and fair funding systems.