₦airaland Forum

THE recent exposé concerning the misgovernance of funds under the Nigerian Education Loan Fund is deeply troubling. President Bola Tinubu, his Education Minister, Tunji Alausa, and the Managing Director of the Nigerian Education Loan Fund, Akintunde Sawyerr, must probe the scheme and ensure its success. The student loan scheme must not fail.

Media reports allege that some universities may be conspiring with banks to withhold disbursed loan funds meant for indigent students.

NELFUND says it has disbursed N45.1 billion in loans to undergraduates from inception in May 2024 to March 2025.

In a meeting with Sawyerr, the Director-General, National Orientation Agency, Lanre Isa-Onilu, said the recent activity of the NOA community orientation and mobilisation officers discovered that tertiary institutions were suspected to collude with banks to delay student loan payments.



He said some institutions had failed to acknowledge funds sent to them by NELFUND, pointing out that these institutions deliberately delay the deployment of loans to offset tuition fees to the disadvantage of beneficiaries.

This translates to the fact that the delayed deployment of the funds is warehoused in banks for corrupt gain.

Meanwhile, students, unaware that their fees have been paid, continue to face harassment from school authorities, including threats of being barred from exams.


This exploitation undermines the very purpose of the scheme, a landmark initiative of the Federal Government designed to alleviate the financial burdens of students.

The loan process, structured to prevent diversion of funds by students, has instead created loopholes for corruption. Funds are released from NELFUND to banks, then to universities, bypassing students to ensure tuition is paid directly. However, some university officials and bankers have turned this into an opportunity for fraud.

Students remain powerless, unaware that their loans have been disbursed.

This mirrors Nigeria’s broader struggles with accountability, where public programmes are routinely hijacked for private gain. The government must fight corruption with clean hands to conquer it across every sector of national life.

For this scheme to succeed, NELFUND must publish a verified list of beneficiaries, enabling students to confirm their loan status and demand accountability.

Also, a digitised system should track disbursements from NELFUND to banks and universities, with notifications sent to students upon payment. Students should receive SMS or email alerts confirming loan disbursements, reducing opportunities for exploitation.

Crucially, there should be swift punishment for offenders. The Independent Corrupt Practices and Other Related Corrupt Offences, Economic and Financial Crime Commission, and the self-styled Department of State Services must collaborate to investigate and prosecute corrupt university officials and bankers.


The NOA should not just condemn corruption but actively expose culprits. This will serve as a deterrent to other university officers and institutions.

While the student loan scheme is commendable, it cannot be the sole solution to Nigeria’s education crisis. The government must fund bursaries, scholarships, and infrastructure investments in existing institutions to expand investments in the sector.

Furthermore, the government must halt the needless expansion of institutions in the country. Approving new universities while neglecting the infrastructural, research and learning needs of current ones is irresponsible. The government must prioritise funding and quality over quantity.

Nigeria must borrow a leaf from the books of other countries with successful student loan programmes. It must study and emulate successful loan systems in the US and UK, adapting best practices to Nigeria’s context.

The NELFUND is a litmus test for the government’s declared commitment to reforming education. If allowed to fail like past development initiatives, such as Operation Feed the Nation, it will not only betray Nigerian students but also reinforce the culture of impunity.

Tinubu must ensure NELFUND is insulated from corruption, with strict oversight and consequences for failure. Education is the foundation of national development; those who sabotage it must face the full wrath of the law.

Cc seun Mynd44 OAM4J Nlfpmod fergie001
https://punchng.com/student-loan-scheme-failing-it-mustnt/#google_vignette

Is it surprising?

When crooks are in power, dont expect any good outcomes.

Sorry Nigeria.

Media reports allege that some universities may be conspiring with banks to withhold disbursed loan funds meant for indigent students.

Anybody wey still call FG for this might be attracting thunder.

This is citizens to citizens issue.. Some citizens are actually horrible than the politicians

PresidObi:
Is it surprising?

When crooks are in power, dont expect any good outcomes.

Sorry Nigeria.

Media reports allege that some universities may be conspiring with banks to withhold disbursed loan funds meant for indigent students.

You did not read the article. It's glaring and obvious.

Make una stop blaming FG for all the life's problem except if you have added them as your next of kin

helinues:
Anybody wey still call FG for this might be attracting thunder.

This is citizens to citizens issue.. Some citizens are actually horrible than the politicians

Why shouldn't we call on the FG?
Isn't NELFUND expected to ensure that the fund releases get to the intended students as and when due?
Make una dey use una sense sometimes. Everything no be we against them

Bobloco:
Why shouldn't we call on the FG?
Isn't NELFUND expected to ensure that the fund releases get to the intended students as and when due?
Make una dey use una sense sometimes. Everything no be we against them

FG have done their part, if the citizens want to short changed themselves, that's their headache.

FG is busy with something else. Funds have been disbursed to the universities and their banks, let them sort themselves out.

Nothing managed by fraud ever succeeds

PresidObi:
Is it surprising?

When crooks are in power, dont expect any good outcomes.

Sorry Nigeria.

Did you read at all.

Bobloco:
Why shouldn't we call on the FG?
Isn't NELFUND expected to ensure that the fund releases get to the intended students as and when due?
Make una dey use una sense sometimes. Everything no be we against them

Seems you are missing something. NELFUND have released the loans to the University, what else will they do, take over the busary of all universities? It's the responsibility of such University to apply the funds as appropriate.
Notification should be sent to benefiting students who should take it up from there

Why do the loans need to go through the schools? Why can’t NELDUNd disburse directly to the students that need them?

You encourage corrupt practices and later come to cry foul that people are corrupt.

helinues:
FG have done their part, if the citizens want to short changed themselves, that's their headache.

FG is busy with something else. Funds have been disbursed to the universities and their banks, let them sort themselves out.

So their role doesn’t involve ensuring that the funds reach the students, who are the very reason NELFUND was founded in the first place?
Honestly, I don’t know where some people with this kind of reasoning come from.

Bobloco:
So their role doesn’t involve ensuring that the funds reach the students, who are the very reason NELFUND was founded in the first place?
Honestly, I don’t know where some people with this kind of reasoning come from.

Funds are released from NELFUND to banks, then to universities, bypassing students to ensure tuition is paid directly. However, some university officials and bankers have turned this into an opportunity for fraud.

He said some institutions had failed to acknowledge funds sent to them by NELFUND, pointing out that these institutions deliberately delay the deployment of loans to offset tuition fees to the disadvantage of beneficiaries.

This should help you and your likes who don't read to comprehend

Bobloco:
So their role doesn’t involve ensuring that the funds reach the students, who are the very reason NELFUND was founded in the first place?
Honestly, I don’t know where some people with this kind of reasoning come from.

Nooooo, their role stops at removing the money from our oil money and dumping it at the gates of each university, everyone interested can then go and "grab it, take it by force and run with it"

Sheuns:
Why do the loans need to go through the schools? Why can’t NELDUNd disburse directly to the students that need them?

You encourage corrupt practices and later come to cry foul that people are corrupt.

It's an Avenue for corrupt enrichment, we told you these guys are very incompetent and some people were telling us he built Lagos

Sheuns:
Why do the loans need to go through the schools? Why can’t NELDUNd disburse directly to the students that need them?

You encourage corrupt practices and later come to cry foul that people are corrupt.

Reasonable number of the students will divert the money. Let's be realistic for once

With all these virtual, aviator betting, data exhaustion

helinues:
Anybody wey still call FG for this might be attracting thunder.

This is citizens to citizens issue.. Some citizens are actually horrible than the politicians

Of course because criminals cannot investigate crime and bring perpetrators to book. Can your god investigate any crime?

Has any criminal who stole public funds been caught?

helinues:
FG have done their part, if the citizens want to short changed themselves, that's their headache.

FG is busy with something else. Funds have been disbursed to the universities and their banks, let them sort themselves out.

So your it is no more your god's responsibility to fight crime? Does he even have any iota of moral justification or will to investigate even the theft of spoon, let alone theft of public funds which he is the chief thief.

Elusive001:
So your it is no more your god's responsibility to fight crime? Does he even have any iota of moral justification or will to investigate even the theft of spoon, let alone theft of public funds which he is the chief thief.

Are those involved in this also politicians?

PresidObi:
Nooooo, their role stops at removing the money from our oil money and dumping it at the gates of each university, everyone interested can then go and "grab it, take it by force and run with it"

You can imagine