By John Umeh
The Federal Government has declared that there is no evidence of illegal or unauthorized deductions from student loans disbursed to beneficiaries across tertiary institutions in Nigeria. The clarification comes amid growing concerns and social media reports alleging that some universities and polytechnics were siphoning parts of the loans intended for students.
In a statement released on Thursday, the Executive Secretary of the Nigerian Education Loan Fund (NELFUND), Dr. Yusuf Sununu, dismissed the claims as unsubstantiated, noting that a thorough audit and investigation of the disbursement process revealed no irregularities or unlawful practices.
“We have carried out a detailed review of all student loan transactions, including disbursement channels and institutional engagements. At this time, there is no verifiable evidence that any tertiary institution has engaged in illegal deductions from student loan funds,” Dr. Sununu stated.
He emphasized that the loan system was designed with multiple layers of accountability, including direct disbursements to students, institution-level monitoring, and oversight by independent audit committees. “The structure of the fund ensures transparency and minimal room for abuse,” he added.
Background to the Allegations
The controversy erupted earlier this month when students from a few institutions took to social media platforms to allege that they received less than the approved amounts from their student loans. Some claimed that their schools deducted administrative charges or hidden levies without prior notice.
This triggered calls from student unions and advocacy groups demanding immediate investigations and a review of the loan disbursement process to ensure fairness and full access to the funds by students.
FG’s Assurance and Monitoring Mechanism
Responding to the public concern, the Federal Ministry of Education, in collaboration with NELFUND and the National Universities Commission (NUC), initiated a swift internal review across several institutions where complaints had emerged. Their findings, according to the government, did not confirm any breach of the loan policy.
The Ministry reiterated its commitment to protecting student rights and ensuring that no part of the loan scheme is manipulated by school authorities or third parties. Minister of Education, Prof. Tahir Mamman, assured students and parents that the system will remain student-centered and free from exploitation.
“We want to reassure all stakeholders that any confirmed case of misconduct will be dealt with firmly. But as of now, there is no credible basis for the claims circulating online,” he said.
Call for Responsible Reporting
The FG also cautioned against the spread of misinformation, urging students to channel grievances through official platforms. “Baseless claims can damage the credibility of the student loan system and discourage potential beneficiaries,” the statement read.
Students have been encouraged to report any anomalies through designated NELFUND complaint portals or their institutions’ student affairs departments for swift resolution.
Looking Ahead
As the student loan scheme continues to roll out nationwide, the government says it is working to improve accessibility, automate processes, and enhance institutional partnerships to prevent future confusion or disputes.
Education stakeholders, meanwhile, have called for greater sensitization among students to understand their rights and the structure of the loan scheme. Many have also recommended routine third-party audits to maintain trust in the program.
With over 300,000 students expected to benefit from the loan scheme in the current academic cycle, the Federal Government’s stance aims to restore confidence in what it calls a “transformative policy for equitable access to higher education.”
