The Federal Government has dispelled fears over alleged illegal deductions from the Nigerian Education Loan Fund (NELFUND), assuring students and parents that “no funds have been lost and trust is not broken.”
Speaking at a high-level meeting with key education stakeholders on Wednesday, May 14, 2025, in Abuja, the Minister of Education, Dr. Maruf Olatunji Alausa, stated that contrary to rumors, no misappropriation of loan funds occurred. Instead, what was observed were lapses in communication between NELFUND, universities, and students.
“The disbursement process is functional,” Alausa said. “We are not fixing a broken system. We’re improving it to serve our students better.”
The meeting, held at the TETFund Auditorium, brought together Vice Chancellors of Federal Universities, the Executive Secretary of the NUC, and the Managing Director of NELFUND. Dr. Alausa emphasized that moving forward, all student charges must be clearly explained, standardized, and justified by institutions to avoid confusion or misinterpretation.
A new committee has been set up to harmonize fees and disbursement timelines, ensure students are notified properly when loans are paid, and establish clear communication between institutions and NELFUND. The use of SMS, emails, and calls will be intensified to ensure students are not left in the dark.
Reiterating President Bola Ahmed Tinubu’s commitment to education, Alausa said the government will not tolerate any misuse of education funds. “NELFUND is a lifeline for Nigerian students and universities. We will protect it with everything we’ve got,” he added.
He also warned that anyone found culpable of any financial malpractice will face strict sanctions.
The press release, signed by Mrs. Boriowo Folasade, Director of Press and Public Relations, reaffirmed the Ministry’s stance on transparency and its goal to ensure every student fully benefits from government education support schemes.
The Ministry concluded by assuring the public that the student loan initiative remains intact, tuition remains free in public institutions, and steps are being taken to eliminate confusion and bring accountability into the system.
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