Reported by Ariajegbe Sylvia Esezobor
The House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing has threatened sanctions against tertiary institutions found to be violating the guidelines governing the administration of the Nigerian Education Loan Fund, warning that it will invoke the relevant provisions of the NELFUND Guidelines, including the suspension of beneficiary institutions from the scheme, if the violations persist.
In a statement issued on Wednesday, October 8, 2026, the committee chairman, Honourable Ifeoluwa Ehindero, said recent monitoring activities and engagements had revealed that some institutions were withholding funds meant for students, delaying refunds and engaging in practices that undermined the integrity of the student loan scheme. "It is important to state that the Committee has observed with concern the growing trend of non-compliance by some beneficiary institutions," Ehindero said. "If this continues, the Committee shall be left with no other option than to invoke relevant sanctions under Section 5.6 of the NELFUND Guidelines." Section 5.6 of the NELFUND Guidelines provides that an eligible tertiary institution shall be suspended from receiving funds from the Fund if it contravenes the provisions of the Student Loan Act 2024 or any relevant section of the guidelines, or engages in fraudulent activities related to institutional charges payment.
The committee's warning follows months of complaints from students and student unions across the country over the handling of NELFUND disbursements by tertiary institutions. In July 2026, the National Association of Nigerian Students released a list of 39 institutions that had received NELFUND tuition payments but were yet to refund students who had paid their fees before the Fund remitted the same fees to the schools on their behalf. The institutions named included Adamawa State University, Federal Polytechnic Mubi, Federal College of Education Yola, Kaduna State Polytechnic, Ogun State Institute of Technology, Federal University Dutsin-Ma, University of Education Akamkpa, University of Uyo, Yobe State University, Nasarawa State University, Federal College of Forestry and Federal University of Education, Pankshin. A subsequent list expanded the number of affected institutions to 43.
The problem of double payment and delayed refunds has become one of the most persistent challenges of the NELFUND scheme. Many students pay their tuition fees from personal or family resources while their loan applications are being processed. When NELFUND subsequently approves the loan and disburses the institutional fee directly to the school, the institution is expected to refund the student the amount already paid. Some institutions have failed to do so, leaving them with double payment for the same academic slot while students remain out of pocket. The Independent Corrupt Practices and Other Related Offences Commission launched an investigation in 2025 following reports that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme, with the institutions alleged to have made unauthorised deductions ranging from N3,500 to N30,000 from each student's institutional fee. The commission also flagged N71.2 billion of an initial N100 billion as diverted, though NELFUND denied the allegation of fund diversion.
The House committee has been investigating the NELFUND scheme since 2025, conducting zonal investigative hearings and engaging with the Fund's management, student leaders and institutional heads. In March 2026, Ehindero disclosed that the committee had facilitated the recovery of over N266 million in NELFUND money withheld by an institution, and that the committee was targeting further recoveries. He said the major challenge had to do with the management and administration of the funds by beneficiary institutions, noting that NELFUND had to deal with over 265 institutions. The committee has consistently maintained that its probe is not a witch-hunt but an effort to ensure transparency, accountability and fairness in the administration of the student loan scheme. Speaker Tajudeen Abbas has also said the House will not allow the scheme to be undermined or abused, and has called for appropriate sanctions for any organisation or individual found to have violated the guidelines.
The scheme itself has grown substantially since its launch. As of September 2026, NELFUND had disbursed N372.62 billion, including N192.89 billion in institutional fees paid directly to 319 institutions and N162.98 billion released to students as upkeep allowances. More than 1.6 million applications had been processed, and the Fund had recovered over N266 million from an institution that had withheld funds. The latest figures represent a significant expansion of the programme, which President Bola Ahmed Tinubu has positioned as a flagship initiative to democratise access to higher education by removing financial barriers for students in public tertiary institutions.
The political context of the committee's warning is significant. The 2027 general elections are less than four months away, and education has emerged as a central issue in the campaign. President Tinubu is seeking a second term on the All Progressives Congress platform, while former Vice President Atiku Abubakar of the African Democratic Congress, former Anambra Governor Peter Obi of the Nigeria Democratic Congress and Oyo State Governor Seyi Makinde of the Allied Peoples Movement are among the major challengers. The NELFUND scheme is one of the administration's most visible interventions in the education sector, and any perception that it is being mismanaged by institutions could damage the government's narrative of progress. The committee's decision to issue a public warning, rather than quietly engaging the affected institutions, reflects a determination to demonstrate that the House is exercising its oversight functions and holding institutions accountable.
For the students who have paid their fees and are awaiting refunds, the committee's intervention offers a measure of hope that their grievances will be addressed. For the institutions named in the NANS lists, the warning is a signal that their conduct is being monitored and that continued non-compliance will carry consequences. For NELFUND, the committee's action reinforces the regulatory framework it has established to govern the scheme. The coming weeks will determine whether the institutions comply voluntarily or whether the committee proceeds with the suspension of beneficiary institutions from the scheme. As Ehindero put it, the committee has observed the growing trend of non-compliance with concern and will not hesitate to invoke the relevant sanctions if the violations persist.
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