Education minister summons VCs, NELFUND over alleged diversion of student loan funds

Tunji Alausa, Minister of education, has summoned an emergency meeting with university Vice Chancellors and the head of the Nigerian Education Loan Fund (NELFUND), amid growing concerns over alleged unauthorised deductions from student loan disbursements.

The meeting, scheduled for May 6, will probe disturbing reports suggesting that some institutions may have siphoned funds earmarked for student financial aid.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) had earlier announced the discovery of billions of naira intended for the student loan scheme which was diverted.

In a statement on Thursday, Alausa described the allegations as a “gross violation of public trust” that could derail the core mission of the education loan scheme.

“These allegations are extremely concerning,” Alausa said in a statement released by Boriowo Folasade, ministry’s Director of press and public relations.

If verified, they represent a betrayal of the government’s commitment to equitable education access and will be met with firm sanctions.”

ICPC had reported that funds disbursed through NELFUND — a flagship initiative launched by President Bola Tinubu to ease access to higher education — may have been tampered with by some institutions.

Though specific universities were not named, the scope of the allegations appears broad enough to trigger a sector-wide response.

In a bid to restore accountability and institutional transparency, the ministry said it will roll out several sweeping measures.

These include a new compliance-tracking system and the launch of a countdown webpage that will publicly monitor how universities manage education funds.

The initiative, in collaboration with the policy think tank Athena Centre, will also introduce an Annual University Transparency Index to benchmark performance.

Furthermore, the ministry announced a nationwide training program for Bursars and ICT Heads of both universities and polytechnics.

The training will focus on the development and management of open-portal systems, aimed at enabling real-time monitoring of student loan inflows and outflows.

As part of our National Education Sector Reform Initiative (NESRI), governance remains the top pillar of our agenda.

“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately,” Alausa said.

Since its inception, NELFUND has been positioned as a cornerstone of President Tinubu’s human capital development agenda. Backed by generous federal allocations, the fund was designed to provide means-tested loans to students in public tertiary institutions, while offering institutions a financial buffer amid declining subventions.

However, this week’s revelations — though still under investigation — risk undermining public confidence in the fund’s management and effectiveness.

Alausa stressed that no one would be shielded if found guilty of manipulating the system.

Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions.

“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 stressed.