Student Loan Scandal: Emergency meeting with Minister, NELFUND, Vice Chancellors postponed

 The eagerly anticipated meeting between the Minister of Education, Dr Tunji Alausa, with the Nigerian Education Loan Fund (NELFUND), 51 Vice-Chancellors and heads of tertiary institutions accused of misappropriating student loan disbursements has been postponed.

Although no reason was given for the postponement, the Minister on Tuesday attended the 2025 International Conference on Smart Education and Digital Literacy in Abuja.

It was gathered that a new date would be announced in due course.

“The postponement was likely due to scheduling conflicts, and the meeting will be rescheduled once the Minister’s engagements are cleared, with stakeholders expecting a productive discussion on addressing the alleged misappropriation issues.”

There had been concerns over alleged unauthorised deductions from student loan disbursements, double institutional fees collection by tertiary institutions, and refusal of beneficiary higher institutions to refund students who had already received NELFUND student loans.

In a statement last week, spokesperson of the Education Ministry, Folasade Boriowo, revealed that the meeting was scheduled for Tuesday, May 6, to probe disturbing reports suggesting that some institutions may have siphoned funds earmarked for student financial aid.

The scheme has come under intense scrutiny due to allegations that some institutions and banks are colluding to make unauthorized deductions from loan funds meant for students.

Also, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has initiated a probe into alleged irregularities and corruption surrounding the student loan process.

According to preliminary findings by the anti-graft agency, while NELFUND released N100bn loans, only N28.8bn actually got to applicants, leaving a staggering N71.2bn unaccounted for.

Some institutions made unauthorised deductions ranging from N3,500 to N30,000 from tuition fees paid through the loan scheme. Most institutions denied the allegations.

It sparked widespread outrage, prompting members of the National Association of Nigerian Students (NANS) to stage a protest on Monday, which included blocking the Lagos-Ibadan Expressway.

In a chat with The Guardian, the Initiator, Creative Change Centre, Omole Ibukun, expressed deep concern at the postponement, stressing that urgent action is needed to address the issue, ensure transparency, and protect the interests of students who are beneficiaries of the loan scheme.

Ibukun noted that the allegations of misappropriation and unauthorized deductions from student loan funds are serious issues that require immediate attention and action from authorities to restore trust and ensure transparency in the loan process.

According to him, the postponement reinforces his initial suspicion that the NELFUND loan was designed to benefit “political loyalists and appointees.

“This only confirms the earlier suspicion that the NELFUND loan was created to settle political loyalists and appointees in the pipeline of the Ministry, the Universities, and the Fund itself.

“Because any serious government would be organizing a public probe of those alleged now, but instead, the meeting that they conceded to have on the matter was postponed without a reason.

“It only shows that the Tinubu government and its representatives are culpable in the corruption.”