FG Orders Nigerian Universities and Polytechnics to Repay Tuition Collected from NELFUND Loan Beneficiaries

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🏛️ House of Reps Orders Tertiary Institutions to Refund Tuition to NELFUND Loan Beneficiaries

The House of Representatives has instructed all Nigerian tertiary institutions to refund tuition fees collected from students who later received support from the Nigerian Education Loan Fund (NELFUND).

This resolution followed a motion presented by Hon. Aliyu Mustapha Abdullahi (APC, Kaduna), who raised concerns over reports that some institutions charged students upfront and still received full payments from the NELFUND scheme—creating financial burdens for students and families.

⚠️ Concerns Over Double Payments and Overcharging

Hon. Abdullahi noted widespread complaints of:

Upfront fee collection from students later covered by NELFUND
Inflated fee submissions by schools on the loan platform
Lack of proper verification systems to catch irregularities

He argued that such actions undermine public trust in the NELFUND initiative and violate the core principles of equitable student support.

💸 NELFUND Disbursement & Allegations of Mismanagement

Since its rollout, NELFUND has processed over 500,000 student applications and disbursed more than ₦54 billion. However, concerns are growing over how schools interface with the platform.

The House debate highlighted that some institutions may be exploiting the system—uploading inflated tuition costs and receiving duplicate payments from both students and the loan fund.

📌 House Resolutions and Recommendations

Following deliberations, the House adopted the motion and issued the following directives:

All tertiary institutions must refund tuition already paid by students who later benefited from NELFUND.
NELFUND is to enhance its verification processes to prevent double claims and inaccurate uploads.
Institutions violating the Student Loan Access Act should be reported and penalized.
NELFUND must strengthen collaboration with regulatory agencies for oversight and transparency.

🕵️ ICPC Investigation: Missing Funds & School Deductions

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) is currently investigating irregularities in the disbursement process. So far:

51 institutions have been linked to unauthorized deductions from student loans.
Of ₦100 billion allocated to the scheme, only ₦28.8 billion has been traced to student accounts.
This leaves over ₦71 billion unaccounted for, raising red flags across the education sector.

🧾 NELFUND Responds to Allegations

In response, NELFUND clarified that the reported discrepancies are tied to older student financing programs and not the current digital loan structure, which began in 2024.

Under the new model:

Tuition is paid directly to verified institutions
Personal stipends are disbursed separately to students
All transactions are handled digitally to reduce fraud and human interference

📢 Next Steps for Students

Students who paid tuition before receiving NELFUND disbursements are advised to contact their school administration for a refund. Institutions are legally obligated to comply or risk sanctions from relevant authorities.

🎓 Restoring Trust in Student Loans

This resolution is part of broader efforts to safeguard student loan operations and build public confidence in government-backed education financing. As demand for NELFUND support grows, strict enforcement and transparency remain critical.