FG summons VCs to answer questions over alleged fraud in student loan scheme

Following the alleged diversion of funds meant for the student loan scheme, the Federal Government has summoned Vice Chancellors of some institutions and the Managing Director of Nigeria Education Loan Fund (NELFund) for a debrief.

This follows a recent report alleging that about 51 institutions had illegally deducted funds meant for the student loans managed by NELFund. This prompted the swift intervention of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to initiate a comprehensive probe into the alleged discrepancies.

Concerned by the development, the Federal Ministry of Education, in a statement by its Director, Press and Public Relations, Boriowo Folasade, called an urgent meeting with Vice Chancellors of the affected universities.

“[The] is convening an urgent meeting on May 6, 2025, with the Vice Chancellors of the affected universities and the Managing Director of NELFund.

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“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,” the statement read.

Folasade quoted the Minister of Education, Olatunji Alausa, as having described the claims as “very disturbing” and a potential violation of public trust.

“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,” the minister said.

To entrench transparency in the student loan scheme process, the Ministry said it will partner with the Athena Centre to launch a compliance-tracking initiative, including a countdown webpage to monitor university compliance.

There's also a plan to introduce an Annual University Transparency Index and provide technical assistance to institutions, as well as providing a training programme for university Bursars and ICT Heads to support the creation and maintenance of an open-portal initiative.

Launched on May 24, 2024, the student loan scheme provides interest-free loans to students in government-owned tertiary institutions across Nigeria.

ALSO READ: ICPC makes U-turn in ₦71.2bn NELFUND diversion claim

As of this April, NELFund said it has disbursed a total of N53.8 billion; the institutional fee paid is N30.1 billion, while the upkeep allowance is approximately N23.6 billion.