The Nigerian Education Loan Fund (NELFUND) has reaffirmed its dedication to transparency and accountability in the disbursement of student loans, amidst recent allegations of fund misappropriation. During a sensitization program held on May 21, 2025, in Ibadan, Dr. Aliyu Muhammad, NELFUND’s Director of Monitoring and Evaluation, addressed concerns regarding the integrity of the loan disbursement process.
Dr. Muhammad emphasized that reports suggesting mismanagement of student loan funds are unfounded. He stated, “You’ve heard allegations, and I guess at the same time, you’ve heard that these allegations are false. Yes, it’s confirmed to be false. So the process is seamless, and we don’t have any issues moving forward.” He further highlighted NELFUND’s collaboration with security and anti-corruption agencies to ensure that loans reach the intended beneficiaries without diversion.
Supporting this stance, NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi, described the allegations as “entirely false, grossly irresponsible, and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians.” She reiterated that NELFUND operates a fully automated loan system with zero human interface, ensuring that every application and disbursement is digitally tracked, time-stamped, and verifiable.
In response to concerns about potential irregularities, NELFUND has intensified its efforts to maintain transparency. The agency has been conducting sensitization programs across various tertiary institutions to educate students about the loan application process and the safeguards in place to protect their interests. Dr. Muhammad noted that these programs are tailored based on invitations and the specific needs of each institution.
Furthermore, the National Orientation Agency (NOA) has pledged to ensure transparency in NELFUND disbursements, following reports of irregularities by some universities and financial institutions. The NOA’s involvement aims to bolster confidence in the loan scheme and ensure that funds are appropriately allocated.
Since its inception, NELFUND has made significant strides in supporting Nigerian students. As of February 2025, the fund has disbursed over ₦20 billion, benefiting more than 192,000 students across various tertiary institutions.
The University of Ibadan, for instance, has seen substantial benefits from the scheme. According to the institution’s Vice-Chancellor, Prof. Kayode Adebowale, 4,834 students have received loans totaling ₦735.8 million. He commended NELFUND for its timely responses and expressed optimism about the continued support for students.
Looking ahead, NELFUND remains committed to its mission of providing financial assistance to Nigerian students, ensuring that higher education is accessible to all, regardless of their economic background. The agency continues to refine its processes and collaborate with relevant stakeholders to uphold the highest standards of public accountability.
