The Federal Ministry of Education has announced that it is launching a comprehensive investigation into serious allegations of unauthorized deductions from student loan disbursements and Nigerian Education Loan Fund (NELFund) accounts by several universities. This action follows a report published by The Guardian Newspaper on Tuesday, April 29, 2025, which detailed the alleged financial misconduct.
The Ministry’s Director of Press and Public Relations issued a statement expressing the government’s deep concern over the allegations. The statement outlined that an urgent meeting has been scheduled for May 6, 2025, to address this critical issue. The meeting will convene key stakeholders, including the Vice Chancellors of the universities implicated in the report and the Managing Director of NELFund.
It’s important to note that the Independent Corrupt Practices and Other Related Offences Commission (ICPC) had previously revealed that it was also conducting an investigation into NELFund, indicating the seriousness of the concerns surrounding the management of these funds.
The Ministry’s statement quoted the Honourable Minister of Education, Dr. Marut Olatunji Alausa, who described the allegations as “very disturbing and extremely concerning.” Dr. Alausa emphasized the severe nature of these claims, stating that “any unauthorized deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFund was established.” He further asserted, “If proven true, such actions would constitute a gross violation of public trust and a betrayal of the government�s commitment to equitable access to education.”
Dr. Alausa reiterated the Ministry’s commitment to upholding the highest standards of governance within the education sector. “As part of our National Education Sector Reform Initiative (NESRI), governance remains the top pillar of our agenda,” he stated. “We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately. Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions.” The Minister’s words convey a strong message of accountability and a determination to protect the interests of students.
The statement also highlighted the significance of NELFund as a flagship initiative of President Bola Ahmed Tinubu’s administration. Dr. Alausa emphasized that the President “made adequate budgetary provisions to support both students and institutions in a fair and transparent manner.” He further explained that “NELFund was created to expand students� access to high-quality education and to support universities financially in a legal and sustainable way. Any attempt to exploit this fund is unacceptable and contradicts the President�s vision for inclusive human capital development.”
The Minister reaffirmed the administration�s unwavering commitment to safeguarding public funds and ensuring that students receive the full benefits of all government education support schemes. This commitment underscores the government’s recognition of the importance of financial aid in making higher education accessible to all eligible students.
In response to the allegations, the Ministry is taking decisive action. The urgent meeting scheduled for May 6th is expected to be a platform for a thorough investigation, where the Ministry will seek to establish the facts, ensure full accountability, and reaffirm its zero-tolerance policy toward financial malpractice within the education sector.
Beyond addressing the immediate crisis, the Ministry is also taking proactive steps to prevent future occurrences of such misconduct. In collaboration with the Athena Centre, the Ministry will launch a comprehensive compliance-tracking initiative, which will include a publicly accessible “countdown webpage” to monitor institutional transparency. This initiative aims to increase oversight and deter potential wrongdoing by making institutional financial practices more visible. The Ministry will also offer technical assistance to institutions to help them improve their financial management systems.
Furthermore, the Ministry plans to introduce an Annual University Transparency Index. This index will serve as a benchmark to promote accountability and enhance the global relevance of Nigerian universities by encouraging them to adopt and adhere to international best practices in financial management and reporting.
To further strengthen the capacity of university administrators, the Ministry will organize a specialized training program for bursars and ICT heads of universities and polytechnics. The training will focus on the development and maintenance of an “open-portal initiative,” which is expected to provide greater transparency and accessibility to financial information within these institutions.
