Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
The Nigerian Education Loan Fund has launched investigations into 34 tertiary institutions across the country over allegations that they failed to refund students whose tuition fees were paid twice under the Federal Government's student loan scheme, a crisis that managing director Akintunde Sawyerr has linked directly to President Bola Tinubu's decision to roll out the programme midway through the academic session. Speaking in an interview with ARISE NEWS on Sunday, 5 July 2026, Sawyerr disclosed that the agency had been flooded with petitions from frustrated students who paid their tuition from personal funds, only for NELFUND to later disburse the same fees directly to their institutions, leaving students out of pocket and desperately awaiting refunds.
According to Sawyerr, the root cause of the crisis is the timing of the scheme's launch. President Tinubu had directed an immediate rollout of the student loan programme rather than waiting for the commencement of a new academic year, a decision that created a chaotic overlap between personal payments and institutional disbursements. "What happened is that a lot of schools got double payment—some from the students and some from us," Sawyerr explained. "The institutions that received the duplicate payments are responsible for refunding the students." He disclosed that the agency is currently scrutinising 34 institutions based on the volume of petitions received, adding that investigations are being conducted in collaboration with anti-corruption agencies, the National Association of Nigerian Students, internal auditors and other stakeholders.
The crisis has inflicted significant hardship on students, many of whom borrowed money from parents, relatives or other sources to pay their tuition before accessing the loan scheme. Sawyerr noted that the refunds are not a matter of convenience but a lifeline for students who are already financially stretched. "Most students in this country are hard up. They don't have enough money for themselves. So when they make payment for their education and then they take a loan for the same education, they expect their money to be refunded to them," he said. He added that some students had borrowed funds from relatives who now expect repayment, placing additional pressure on young people who are already struggling to make ends meet.
While some institutions have been commended for promptly processing refunds, others have delayed the process, and NELFUND is still investigating whether the delays are deliberate or the result of administrative shortcomings. "I reserve judgement on, you know, the intentionality around it because for some of them, they just didn't have the process to make refunds," Sawyerr said. The agency has already deployed a multi-agency team, including officials from the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), NANS and internal auditors, to investigate one institution accused of withholding refunds. However, Sawyerr admitted that NELFUND lacks the legal authority to compel institutions to issue refunds or prosecute offenders, a limitation that has left many students with no option but to also submit petitions to anti-corruption agencies.
To prevent a recurrence of the double payment crisis, Sawyerr disclosed that NELFUND is upgrading its payment platform to introduce a tokenised system that would allow students to authorise tuition payments directly at their institutions using their mobile phones. "We're looking at a tokenised system where the student has the funds effectively as a token on their telephone and when they go to the bursary, they can effectively push a button that makes the payment," he explained. The agency has deliberately chosen to pay tuition fees directly to institutions rather than into students' bank accounts to prevent the diversion of education funds for other purposes, a decision Sawyerr defended as a necessary safeguard.
The investigations come amid broader concerns about the management of the student loan scheme, which was established in April 2024 after President Tinubu assented to the Student Loans Act. The scheme was designed to provide interest-free loans to Nigerian students in tertiary institutions, with repayment beginning two years after the completion of the National Youth Service Corps programme. However, the mid-session rollout has exposed significant operational challenges, including the double payment issue and the agency's limited enforcement powers. Sawyerr also revealed that NELFUND has refused to approve excessive tuition increases by some institutions, insisting that the agency would not fund unjustified fee hikes while continuing efforts to improve transparency in the programme.
The investigation has drawn attention to the vulnerability of students caught between institutional bureaucracy and a fledgling loan scheme. Many affected students have expressed frustration over the delays, with some alleging that institutions are deliberately withholding refunds while using the funds for other purposes. The involvement of the EFCC and ICPC signals that the matter is being treated with the seriousness it deserves, though the absence of direct enforcement powers for NELFUND remains a significant gap in the regulatory framework. As the investigations continue, students across the country are watching closely, hoping that the probe will lead to swift refunds and that the tokenised payment system will finally put an end to the double payment nightmare that has compounded their financial burdens.
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