FG Probes 51 Schools For Alleged Student Loan Fraud

The presidency has vowed to sanction tertiary institutions implicated in alleged student loan fraud.

Senior Special Assistant to the President on Student Engagement, Comr. Asefon Sunday Dayo disclosed this in a press statement, citing reports of unauthorised deductions from the Nigerian Education Loan Fund (NELFUND) student loans by some schools.

According to the report, at least 51 institutions have allegedly deducted between N20,000 and N40,000 from students’ loan disbursements, thereby undermining the scheme’s purpose.

To address this issue, the presidential aide stated that his office, in collaboration with the Minister of Education, will introduce a monitoring system with sanctions.

This includes establishing a monitoring committee to ensure compliance and deploying anti-graft agencies like the EFCC and ICPC to investigate unauthorised deductions, identify culprits, and apply appropriate sanctions to prevent further abuse.

“These illegal deductions, coupled with the refusal by some institutions to publicly announce the disbursement of funds to eligible students, represent a grave threat to the credibility of the NELFUND programme,” he said.

He emphasised that these practices tarnish President Bola Tinubu’s administration, which launched the scheme to provide inclusive access to education and relief for Nigerian parents.

“The intent of the loan is to support students, not to become an avenue for exploitation by school authorities,” he said.

FG Probes 51 Schools For Alleged Student Loan Fraud is first published on The Whistler Newspaper