Several graduates from public tertiary institutions have raised alarm over the delayed disbursement of student loans under the Nigeria Education Loan Fund (NELFUND), with some claiming that the loans were paid to their schools months after they had already graduated. These graduates, who had initially applied for the loans to fund their studies, were left to fend for themselves when the disbursements failed to arrive on time, forcing them to seek alternative means to pay their tuition fees.
To their surprise, the loans were eventually disbursed after they had already settled their fees themselves and left school. Furthermore, some of the graduates revealed that they continue to receive the N20,000 monthly upkeep stipends, despite no longer being students.
The Nigeria Education Loan Fund has recently been under intense scrutiny following allegations of fraud and mismanagement. The National Orientation Agency (NOA) accused certain institutions of illegally profiting from the loans, with unauthorized deductions ranging from N3,500 to N30,000 from the fees paid via the scheme. The Independent Corrupt Practices and Other Related Offenses Commission (ICPC) has since launched an investigation into the matter.
According to preliminary findings by the ICPC, while NELFUND released a total of N100 billion in loans, only N28.8 billion actually reached the intended recipients, leaving an astonishing N71.2 billion unaccounted for.
This revelation has sparked outrage among Nigerian students, with the National Association of Nigerian Students (NANS) vowing to protest the discrepancies in the handling of the loan funds.
One affected graduate, speaking to The PUNCH, shared their frustration, saying: “I registered for NELFUND when I desperately needed funds to pay my second-semester final year fees. But the approval didn’t come in time, so I sourced the money myself. I graduated, only to later find out via my student portal that NELFUND had paid my fees in full. When I contacted them, they told me to request a refund from the school. But how do I request a refund for a fee I’ve already paid, and when I’m no longer a student?”
This concern is echoed by another graduate from the University of Benin who added, “I applied for the loan as a 400-level student and had to pay my fees myself before my final exams. Last month, I suddenly received a N20,000 upkeep payment and discovered my loan had just been approved—months after I graduated. Why are they disbursing loans to graduates? This shows inefficiency.”
Parents are also expressing worry over the continued disbursement of upkeep payments. Mr. Ibrahim, a parent, said, “My son, who graduated two months ago, continues to receive upkeep payments. He was shocked when he got the alert. We don’t know how to stop it. We need help.”
The Academic Staff Union of Universities (ASUU) has also voiced its concerns, with President Prof. Emmanuel Osodeke stating that they are closely monitoring the situation and awaiting the outcome of the investigation.
Efforts to reach NELFUND's Director of Corporate Communications, Oseyemi Oluwatuyi, for comment were unsuccessful.
As the investigation into the mishandling of funds continues, affected students and graduates are demanding transparency and accountability from NELFUND, urging that the system be reformed to prevent further inefficiencies and ensure that the loans reach the students who need them most.
