NELFUND Faces Backlash Over Delayed Disbursements and Allegations of Mismanagement

The Nigeria Education Loan Fund (NELFUND) is under intense scrutiny following complaints from graduates who report receiving loan disbursements and monthly stipends well after they had completed their studies.

Several former students from public universities and polytechnics revealed to The PUNCH that despite applying for the loans before graduating, the funds were disbursed long after they had already paid their fees through alternative means. In some cases, graduates continued to receive the N20,000 monthly upkeep stipends despite no longer being enrolled.

One graduate shared their frustration, stating, “I applied for the loan during my final semester, but due to delays in processing, I had to pay my fees on my own. After I graduated, I found out the loan was disbursed to my school. They told me to request a refund, but that’s complicated since I am no longer a student.”

Another former student from the University of Benin echoed similar concerns, saying, “The loan was approved months after I had completed my studies, and then I received a surprise N20,000 upkeep alert. This shows a clear failure in the system.”

Parents are also expressing concern. Mr. Ibrahim, whose son graduated two months ago, said, “My son is still receiving the monthly stipends, and we don’t know how to stop it. We’re unsure what to do.”

The controversy surrounding NELFUND comes amid growing allegations of misconduct in the loan disbursement process. The National Orientation Agency (NOA) has accused certain institutions of colluding with banks to delay payments and make unauthorized deductions from the funds.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) revealed that while NELFUND disbursed N100 billion in loans, only N28.8 billion reached the beneficiaries, leaving a staggering N71.2 billion unaccounted for. The ICPC has since launched an investigation to look into the allegations.

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The National Association of Nigerian Students (NANS) has condemned the situation and threatened to stage protests if the discrepancies are not addressed swiftly.

Additionally, there are reports that some institutions unlawfully charged students fees ranging from N3,500 to N30,000 when processing tuition payments through the loan scheme.

The Academic Staff Union of Universities (ASUU) is also closely monitoring the issue. ASUU President, Prof. Emmanuel Osodeke, said, “We are waiting for the results of the investigation and expect accountability from those responsible.”

As of the time of this report, efforts to reach NELFUND’s Director of Corporate Communications, Oseyemi Oluwatuyi, for a response were unsuccessful.


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