Student Loan Refund Probe: NELFUND Investigates 34 Tertiary Institutions

The Nigerian Education Loan Fund (NELFUND) has launched investigations into 34 tertiary institutions following allegations that some schools failed to refund students whose tuition fees were paid twice under the Federal Government’s student loan programme. Managing Director of NELFUND, Akintunde Sawyerr, disclosed that the agency began the probe after receiving a growing number of complaints from affected students. He said the investigations are being conducted in collaboration with the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the National Association of Nigerian Students (NANS), internal auditors and other relevant stakeholders. According to Sawyerr, the issue arose when the student loan scheme commenced midway through an academic session. Many students had already paid their tuition fees before NELFUND later settled the same fees directly with their institutions, resulting in double payments. He explained that while NELFUND pays tuition directly to schools to prevent misuse of loan funds, institutions that receive duplicate payments are responsible for refunding the excess to students. However, some schools have delayed or failed to process those refunds, leaving many students and their families under financial strain, especially those who borrowed money to pay school fees before receiving the loan. Sawyerr noted that although several institutions have handled the refund process efficiently, others have struggled due to administrative shortcomings. He added that NELFUND is introducing a token-based digital payment system that will allow students to electronically authorise tuition payments at their institutions, making the process more transparent and reducing future payment disputes.

The NELFUND boss clarified that the agency has no legal authority to compel institutions to issue refunds or prosecute offenders, but said complaints from students have also been forwarded to anti-corruption agencies for independent action. He revealed that joint investigative teams have already visited some institutions to verify the allegations. Sawyerr also disclosed that NELFUND has refused to honour tuition payments for institutions that introduced excessive fee increases after the launch of the loan scheme, stressing that the agency remains committed to protecting students while ensuring accountability. He added that investigations will continue until every reported case is thoroughly reviewed and appropriate action is taken where necessary.

#UTVAfrica#