The House of Representatives has directed all tertiary institutions in Nigeria to refund tuition fees collected from students who later benefited from the Nigerian Education Loan Fund (NELFUND).
The resolution followed a motion raised by Hon. Aliyu Mustapha Abdullahi (APC, Kaduna), who expressed concern over reports that some institutions collected fees upfront and still received full disbursements from the loan scheme.
According to Abdullahi, the situation undermines the credibility of the programme and places unnecessary financial strain on students and their families. He noted several complaints about inflated fee submissions on the NELFUND portal and called for a full review of the verification process.
Loan Disbursement and Allegations of Mismanagement
NELFUND has recorded over 500,000 applicants since its rollout, with more than ₦54 billion reportedly disbursed to students. However, concerns have arisen over irregularities in the way institutions interact with the platform.
The lawmaker highlighted a lack of proper checks in place, stating that some schools may have taken advantage of the system by uploading inflated tuition fees and collecting payments from both students and NELFUND.
Following the debate, the House adopted the motion and issued several recommendations:
All institutions must refund any tuition already paid by students who later received loans from NELFUND.
NELFUND should deploy improved verification systems to prevent multiple claims and irregular uploads.
Schools found violating the Student Loan Access Act should be reported and penalised.
The loan fund was also advised to work closely with regulatory agencies to maintain oversight.
Ongoing Investigation by ICPC
Earlier this year, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) launched a probe into loan-related activities across several institutions.
Findings indicated that 51 schools were allegedly involved in unauthorised deductions from student loan payments. Out of ₦100 billion released for the scheme, only ₦28.8 billion had been traced directly to student accounts, raising questions about the whereabouts of the remaining ₦71.2 billion.
However, NELFUND responded by stating that the reported discrepancies were linked to previous student financing initiatives that existed before the current loan scheme began operations in 2024.
In its clarification, the agency explained that tuition is now paid directly to verified institutions, while students receive personal allowances separately. All transactions, it added, are processed digitally to limit human interference.
Next Steps for Students
Students who paid tuition before receiving their NELFUND disbursement are expected to approach their school authorities for a refund. Lawmakers stressed that institutions are obligated to comply with this directive or risk sanctions.
The resolution adds another layer to ongoing efforts aimed at strengthening trust in the government’s education financing system, especially as more students continue to apply for support under the new scheme.
