The Nigerian Education Loan Fund (NELFUND) has commenced an investigation into 34 tertiary institutions over allegations that they failed to refund students whose tuition fees were paid twice under the Federal Government's Student Loan Scheme.
The investigation follows a growing number of complaints and petitions from affected students who claimed they had paid their tuition fees before NELFUND later made direct payments to their institutions, resulting in duplicate payments.
Speaking on the development, NELFUND Managing Director, Akintunde Sawyerr, said the Fund is working with the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the National Association of Nigerian Students (NANS), and the agency's internal auditors to determine the extent of the alleged infractions and ensure that affected students receive their refunds.
According to Sawyerr, the issue arose during the early implementation of the student loan programme when many beneficiaries had already settled their tuition fees before their loan applications were approved. As part of the scheme, NELFUND subsequently paid the same tuition fees directly to the respective institutions, leading to duplicate payments.
He explained that institutions that received both the students' payments and NELFUND's tuition disbursements are responsible for refunding the affected students.
"The schools that received both payments have an obligation to refund the students," Sawyerr said, adding that while several institutions have complied with the directive, others have delayed or failed to process the refunds, prompting the ongoing investigation.
The Managing Director noted that NELFUND currently lacks the statutory powers to compel institutions to make immediate refunds. However, he said the collaboration with anti-corruption agencies is expected to strengthen accountability and ensure compliance where necessary.
To prevent similar issues in the future, Sawyerr disclosed that NELFUND is developing a token-based payment system that will improve transparency in tuition disbursements and eliminate the risk of duplicate payments. The proposed system is expected to allow institutions to verify payments before processing tuition fees, creating a more secure and efficient loan administration process.
The Federal Government's Student Loan Scheme was introduced to improve access to higher education by providing financial support to eligible Nigerian students. Since its rollout, thousands of students have benefited from tuition payments and upkeep loans through NELFUND.
The latest investigation underscores the Fund's commitment to ensuring that public resources are properly managed and that students receive the full benefits of the programme. Students who believe they are affected have been encouraged to continue reporting unresolved refund cases through the appropriate NELFUND channels while investigations continue.
The outcome of the probe is expected to determine the next course of action against any institution found to have unlawfully withheld students' refunds.