NELFUND, EFCC intensify probe into 34 institutions over alleged unpaid student refunds

NELFUND, EFCC intensify probe into 34 institutions over alleged unpaid student refunds

The Nigerian Education Loan Fund (NELFUND) has intensified its 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 probe, being conducted in collaboration with the Economic and Financial Crimes Commission (EFCC), follows a growing number of complaints from students who claimed they had yet to receive refunds after paying their tuition fees before NELFUND later settled the same fees directly with their institutions.

Managing Director of NELFUND, Akintunde Sawyerr, disclosed that the agency had constituted a five-member investigative team comprising operatives of the EFCC, internal auditors and other officials to examine the allegations and determine whether any financial misconduct or administrative lapses occurred.

According to Sawyerr, about 34 institutions are currently under close scrutiny as the agency seeks to ensure transparency, accountability and the protection of beneficiaries of the Federal Government’s education financing initiative.

He explained that the refund challenge resulted from President Bola Ahmed Tinubu’s directive that the student loan scheme should commence in the middle of an academic session rather than waiting for a new session.

Because the programme began after many institutions had already commenced registration, thousands of students paid their tuition fees from personal savings or borrowed funds to avoid missing academic deadlines while awaiting approval of their loan applications.

When the applications were eventually approved, NELFUND also paid the tuition fees directly to the institutions, resulting in duplicate payments.

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“What happened is that a lot of schools got double payment — some from the students and some from us,” Sawyerr explained.

He noted that institutions which received duplicate payments are responsible for refunding the affected students, stressing that the refund process falls outside NELFUND’s direct control.

“The refund process is entirely out of our hands. It is the recipient of the double payments that is obliged to make refunds to the students,” he said.

According to the NELFUND boss, delays in processing refunds have created financial difficulties for many students, especially those who borrowed money from relatives, friends or financial institutions to pay their tuition while waiting for their loans.

He disclosed that many affected students have submitted complaints not only to NELFUND but also to the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC), prompting the agency to strengthen its collaboration with anti-corruption authorities.

Sawyerr, however, cautioned against assuming that all institutions deliberately withheld students’ refunds, noting that some schools lacked effective administrative procedures for processing reimbursements.

“Some have been very good at this. Others haven’t been so good at it. I reserve judgment on the intentionality around it because, for some of them, they just didn’t have the process to make refunds,” he said.

Although NELFUND lacks the statutory powers to compel institutions to refund students or prosecute erring officials, Sawyerr expressed confidence that the ongoing collaboration with the EFCC and other oversight agencies would strengthen accountability and ensure that affected students receive their money.

He also revealed that the agency is developing a token-based payment platform that would enable students to authorise tuition payments electronically before funds are transferred directly to their institutions.

According to him, the proposed digital system is designed to eliminate duplicate payments, improve transparency and reduce administrative bottlenecks associated with the current process.

Sawyerr explained that NELFUND deliberately chose not to pay loan funds directly into students’ bank accounts because doing so could expose the programme to the risk of diversion of funds meant for educational purposes.

The NELFUND Managing Director also expressed concern over tuition fee increases by some institutions following the introduction of the student loan scheme.

He disclosed that the agency had refused to honour payment requests from institutions that increased their fees beyond acceptable levels, insisting that public funds should not be used to encourage arbitrary tuition hikes.

As investigations continue, Sawyerr assured students that every reported irregularity would be thoroughly examined, adding that the agency routinely sets up investigative panels whenever concerns are raised in order to strengthen the integrity of the scheme.

The outcome of the ongoing investigation is expected to determine whether the delays in refunding students resulted from administrative shortcomings or deliberate misconduct by any of the affected institutions. It is also expected to shape future reforms aimed at improving the implementation of the student loan scheme, enhancing transparency and safeguarding the interests of Nigerian students.

NELFUND, EFCC intensify probe into 34 institutions over alleged unpaid student refunds