The Nigerian Education Loan Fund (NELFUND) has launched an investigation into 34 tertiary institutions over allegations that they failed to refund students who paid tuition fees before receiving support under the Federal Government’s student loan scheme.
The agency said the probe followed complaints from beneficiaries who claimed their schools retained duplicate tuition payments after NELFUND had already settled their fees.
NELFUND, EFCC Begin Investigation
Managing Director of NELFUND, Akintunde Sawyerr, said a special investigative team comprising officials of the agency, internal auditors and operatives of the Economic and Financial Crimes Commission (EFCC) is handling the matter.
According to him, the team will determine why some institutions failed to refund affected students despite receiving tuition payments from NELFUND.
“Several institutions refunded the excess payments promptly, while others have yet to do so. That is why we decided to investigate the complaints.”
How the Duplicate Payments Happened
Sawyerr explained that the issue arose because the student loan programme started after many institutions had already begun their academic sessions.
As a result, many students paid their tuition fees with personal funds to avoid missing registration deadlines while waiting for their loan applications.
When NELFUND later approved the loans, it paid the tuition fees directly to the institutions, leading to duplicate payments in some cases.
He stressed that institutions that received both payments are responsible for refunding the affected students.
Agency Considers New Payment System
To prevent similar cases, NELFUND is considering introducing a token-based payment system.
The proposed system would allow students to authorise tuition payments electronically before funds are released to their institutions.
However, Sawyerr ruled out paying tuition loans directly into students’ personal bank accounts.
He said such an arrangement could increase the risk of diverting education funds for other purposes.
NELFUND Raises Concern Over Fee Hikes
Sawyerr also expressed concern over reports that some institutions increased tuition fees after the introduction of the student loan programme.
According to him, NELFUND has refused requests from schools seeking funding for what it considers excessive fee increases.
He insisted that the scheme should not become an excuse for arbitrary tuition hikes.
Agency Promises Transparency
Sawyerr assured students that NELFUND would investigate every complaint thoroughly.
Meanwhile, he noted that some affected beneficiaries have already reported the matter to the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
He added that the agency remains committed to improving transparency and accountability in the implementation of the student loan programme.
