The Federal Government is facing growing criticism over delays and suspected irregularities in the disbursement of student loans through the Nigeria Education Loan Fund (NELFUND).
While government officials insist the process is ongoing and transparent, students, institutions, and civil society groups continue to raise red flags over gaps in the system.
The controversy began when the Independent Corrupt Practices and Other Related Offences Commission (ICPC) released an initial statement suggesting ₦100 billion had been released by the government, but only ₦28.8 billion had reached students. This led to outrage and speculation that ₦71.2 billion in student loans might have been diverted or mismanaged.
However, just hours later, the ICPC walked back the claim. In a revised statement, the agency admitted that a keyword “NOT” was accidentally omitted from its earlier press release. This omission gave the impression that discrepancies had already been established. The commission clarified that, at this point, no confirmed case of diversion or misappropriation exists.
“What we’ve verified so far is how much was received and how much was disbursed by NELFUND,” said Demola Bakare, ICPC’s Director of Public Enlightenment and Education. “The impression that funds were diverted or that discrepancies exist is incorrect at this stage. We’re still investigating.”
Still, the damage had been done. Nigerians on social media expressed deep concern over the handling of public communication, especially when it comes to funds meant to support access to higher education. For many, the mix-up raised fresh questions about the transparency and efficiency of the entire student loan system.
According to ICPC’s latest update, NELFUND received ₦203.8 billion in total, not ₦100 billion as initially reported. The funds came from various sources, including the Federation Account Allocation Committee (FAAC), the Economic and Financial Crimes Commission (EFCC), and two tranches from the Tertiary Education Trust Fund (TETFund). As of March 2025, only ₦44.2 billion had been disbursed across 299 institutions, benefiting about 293,178 students.
The National Association of Nigerian Students (NANS) insists the problems run deeper. According to NANS Vice President for Inter-Campus and Gender Affairs, Akinbodunse Felicia, some institutions have been deducting between ₦3,500 and ₦30,000 from students’ loan disbursements. She alleged that some schools and banks colluded to withhold funds or failed to inform students that money had been disbursed in their names.
“Nigerian students are suffering,” Felicia said. “Some were still made to pay fees out of pocket even after loans were supposedly sent to their schools. That’s corruption, and we won’t sit quietly.”
The National Orientation Agency (NOA) backed these claims, saying their investigations confirmed that some institutions and banks failed to credit students or diverted funds. A formal petition was submitted to ICPC and triggered the current probe.
In response, the House of Representatives Committee on NELFUND stepped in. It pledged to work closely with ICPC to monitor loan disbursements and ensure that students receive every naira intended for their education.
Akintunde Sawyerr, NELFUND’s Managing Director, acknowledged the reported issues and said the agency is cooperating fully with investigators. He stressed that NELFUND’s mission is to remove financial barriers to education and build trust among young Nigerians.
The Student Loans (Access to Higher Education) Act, signed into law in 2024, established NELFUND to help Nigerian students cover tuition and other academic costs through accessible loans. But if delays and trust issues persist, students could be the ones paying the price both financially and emotionally.
The public awaits the findings of ICPC’s full investigation. And for the students, what they desire isn’t more political back-and-forth, it’s simply access to the loans they were promised, without delay, deduction, or drama.
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