Nigeria’s Student Loan Scheme in Crisis: Billions Unaccounted For

The Nigeria Education Loan Fund (NELFUND) has come under fire from graduates, parents, and student organizations over allegations of mismanagement and corruption. Several graduates have shared heartbreaking stories of receiving student loans and upkeep stipends months after completing their studies, leaving them frustrated and financially strained.

One graduate recounted how they applied for the loan scheme before graduation but received the funds long after settling their tuition fees independently. “I registered for NELFUND when I desperately needed funds to pay my second-semester final year fees. But the approval didn’t come in time, so I sourced the money myself and paid the school. I eventually graduated, only to later discover via my student portal that NELFUND had paid my fees in full,” they said.

The graduate added, “I contacted them and was told to request a refund from the school. But how do I request a refund for a fee I’ve already paid and when I’m no longer a student?” They also expressed concern about receiving upkeep money despite informing NELFUND of their graduation.

Another graduate from the University of Benin shared a similar experience, saying, “I applied for the loan in my final days as a 400-level student. I waited for months but had to pay the fees myself before my final exams. Last month, I suddenly got a N20,000 upkeep payment and discovered my loan had just been approved—months after graduation.”

Parents are also feeling the strain. Mr. Ibrahim, father of a recent graduate, said his son continued to receive upkeep payments despite completing his studies two months ago. “He was shocked when he got the alert. We don’t know how to stop it. We need help,” he pleaded.

The loan scheme, designed to ease the financial burden on students, is now under scrutiny. Preliminary findings by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) revealed that while NELFUND disbursed N100 billion in loans, only N28.8 billion reached the intended student beneficiaries, leaving a staggering N71.2 billion unaccounted for.

The National Orientation Agency (NOA) has also raised red flags, alleging that certain institutions and banks conspired to delay payments, creating opportunities for illegal deductions and profiteering. Reports indicate that deductions ranging from N3,500 to N30,000 were made from student fees under the guise of administrative charges.

The ICPC has launched a full investigation into the alleged irregularities, assuring transparency and accountability in the disbursement of public funds. The National Association of Nigerian Students (NANS) has expressed outrage, promising to launch nationwide protests. The Academic Staff Union of Universities (ASUU) has also weighed in, awaiting the result of the investigation and hoping those involved will be brought to justice.

As the situation unfolds, students and parents are left wondering when the system will be fixed and when they will receive the support they desperately need.