NELFUND Faces Criticism Over Delayed Student Loan Disbursements to Graduates

The Nigeria Education Loan Fund (NELFUND) is facing mounting criticism following complaints from graduates who claim they received loan payments and monthly stipends long after completing their studies.

Several former students from public universities and polytechnics told The PUNCH that although they applied for the loans before graduation, delays in processing meant the funds were sent to their institutions months after they had paid their fees by other means and left school.

Surprisingly, some of these ex-students say they are still receiving monthly upkeep allowances of N20,000 despite no longer being enrolled.

One affected graduate shared, “I applied for the NELFUND loan during my final semester. When approval didn’t come through on time, I had to find another way to pay my fees. I’ve since graduated, only to find out the loan was later paid directly to my school. I was advised to request a refund, but that’s complicated now that I’m no longer a student.”

Another graduate from the University of Benin echoed similar frustrations. “The loan was approved months after I had finished school. I got a surprise alert of N20,000 upkeep recently. This is a clear failure in the system,” he said.

Parents are also raising the alarm. One, Mr. Ibrahim, said his son who graduated two months ago is still receiving stipends. “He didn’t know how to stop it. We’re concerned and unsure what to do.”

The controversy comes amid broader allegations of misconduct in the student loan scheme. The National Orientation Agency (NOA) recently accused some institutions of colluding with banks to delay payments and make illegal deductions from loan disbursements.

According to the Independent Corrupt Practices and Other Related Offences Commission (ICPC), while NELFUND disbursed N100 billion in loans, only N28.8 billion reached actual beneficiaries—raising concerns about the whereabouts of the remaining N71.2 billion.

In response, the ICPC has launched an investigation through its Special Task Force. The commission’s spokesperson, Demola Bakare, confirmed that inquiries began immediately after receiving reports of irregularities.

The National Association of Nigerian Students (NANS) has also condemned the situation and promised to stage protests if the discrepancies are not resolved promptly.

Additionally, reports have surfaced alleging that certain institutions charged students unauthorized fees ranging from N3,500 to N30,000 when processing tuition payments through the loan scheme.

Meanwhile, the Academic Staff Union of Universities (ASUU) has said it is monitoring developments closely. “We await the outcome of the investigation and expect anyone found guilty to be held accountable,” said ASUU President, Prof. Emmanuel Osodeke.

Efforts to contact NELFUND’s Director of Corporate Communications, Oseyemi Oluwatuyi, were unsuccessful as of press time.