A wave of social media backlash has followed the Nigerian Education Loan Fund’s (NELFUND) rejection of the Guardian’s report alleging unauthorised deductions from student loans, with many beneficiaries using the opportunity to raise broader concerns about disbursement delays and lack of oversight.
In an official statement, NELFUND distanced itself from the April 29 report, saying it was not consulted nor did it provide data or comments for the article, titled “51 Varsities, Others Embroiled in Illegal Deductions from Students’ Loans.” The agency emphasised that all valid information would be shared only through its authorised channels.
The Guardian reported that No fewer than 51 institutions have been fingered in illegal deductions and attendant exploitation of the Nigerian Education Loan Fund (NELFUND) scheme.
The report also learnt that the errant institutions make between N3,500 and N30,000 off each student’s institutional fee that was submitted and received from NELFUND.
NELFUND and the National Orientation Agency (NOA) had accused these institutions of engaging in “deceptive practices” by collecting institutional fees from the government without refunding the full value to students at the point of disbursement.
However, NELFUND’s clarification did little to stem growing frustration online, as students and observers flooded NELFUND’s social media pages with complaints.
“Your duties shouldn’t just end at disbursement of the loans,” one X user wrote. “You’ve got to monitor how [they’re used], in order to discourage acts of corruption. This noble programme by the @officialABAT government must not die because of this.”
Another user directly appealed to Managing Director Akintunde Sawyerr, saying, “NELFUND loan beneficiaries who updated their bank details after initial errors still haven’t received their upkeep nearly a year later. I urge immediate action. If not, we’ll consider further measures.”
A separate post from The Polytechnic Ibadan echoed similar frustrations, stating: “We kindly request an update on the disbursement timeline” for students who have yet to receive their fees.
NELFUND has not issued a direct response to the allegations raised in the comments section. However, the wave of public outcry highlights ongoing challenges in the implementation of the federal government’s student loan initiative.
Meanwhile, the Centre for Anti-Corruption and Open Leadership (CACOL) has called on the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) to investigate universities’ alleged fraudulent deductions from student loans.
“We are deeply disturbed by these reports and call for an immediate probe into the matter. The student loan scheme was created to empower young Nigerians, not to be exploited by institutions for unjust enrichment. This is a betrayal of trust and a disservice to the future of our nation” CACOL said.
