The Nigeria Education Loan Fund (NELFUND) is facing backlash from former students of public tertiary institutions following revelations that loan disbursements intended to cover their school fees were made months after they had graduated.
In interviews with The PUNCH, several graduates disclosed that although they had applied for the loans before completing their studies, the funds were delayed, compelling them to seek alternative ways to settle their fees.
They later discovered that NELFUND had paid the fees directly to their institutions well after they had already graduated and covered the costs themselves.
Adding to the confusion, many of these graduates continue to receive N20,000 monthly upkeep stipends from the fund despite no longer being enrolled in any institution.
The situation has sparked wider concerns amid ongoing investigations into the loan scheme.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched an inquiry following allegations of irregularities.
Preliminary findings suggest that out of NELFUND’s N100 billion in disbursed loans, only N28.8 billion reached actual applicants, leaving over N71 billion unaccounted for.
The National Orientation Agency (NOA) has also alleged that some institutions, in collaboration with banks, deliberately delayed payments to take advantage of the system, and that some made unauthorised deductions of between N3,500 and N30,000 from student loans.
The National Association of Nigerian Students (NANS) has condemned the handling of the funds and vowed to protest the discrepancies.
Meanwhile, the Academic Staff Union of Universities (ASUU) stated it is monitoring developments and awaiting the outcome of the investigation.
ICPC spokesperson Demola Bakare confirmed the launch of an investigation by the agency’s Special Task Force following the allegations.
One affected graduate said, “I applied for the loan to pay my final-year fees but didn’t get approved in time, so I paid out of pocket.
After graduation, I found out NELFUND had paid the same fees to my school. They advised me to ask for a refund, but that’s not feasible now.
I’ll repay the upkeep allowance, but not the tuition—they paid it too late.”
Another graduate from the University of Benin shared a similar experience, saying, “The loan was approved months after I finished school.
This reflects serious inefficiency.”
A parent also expressed concern, noting that his son, who graduated two months ago, still receives upkeep payments with no way to opt out.
Efforts to contact NELFUND’s Director of Corporate Communications, Oseyemi Oluwatuyi, were unsuccessful at the time of reporting.