NELFUND denounces allegations of financial mismanagement

The Nigerian Education Loan Fund (NELFUND) has issued a rebuttal to recent reports alleging financial mismanagement within its student loan scheme.

In a statement released on Thursday, the Fund described the reports as “inaccurate, misleading, and dangerously speculative.”

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) had earlier announced the discovery of billions of naira intended for the student loan scheme which was diverted.

However, NELFUND clarified that the figures cited in the ICPC’s findings pertain to previous education financing interventions and are not associated with the current student loan program.

It emphasised that such claims of mismanagement were are “entirely false, grossly irresponsible, and deeply damaging to the integrity” of the institution.

“This is a coordinated distortion of facts that undermines public trust, weaponizes misinformation, and threatens the credibility of a national intervention still in its infancy,” Oseyemi Oluwatuyi, Director of Strategic Communications at NELFUND, stated.

The Fund further asserted that all institutional fees are paid directly to verified institutions, while upkeep allowances are disbursed to the verified bank accounts of eligible students. The fund further explained that it operates a fully automated loan system with zero human interface, ensuring that every application and disbursement is digitally tracked, time-stamped, and verifiable.

Related News

Despite the challenges posed by these allegations, the fund remains committed to transparency and cooperation with oversight agencies, including the ICPC.

It also pledged to continue upholding the highest standards of public accountability in its administration of the student loan scheme.

NELFUND was established under the Student Loans Act of 2024, signed into law by President Bola Ahmed Tinubu, to make higher education accessible to all deserving Nigerian students.

The scheme aims to provide interest-free loans to eligible students, with repayment commencing two years after completing the National Youth Service Corps (NYSC).

As at February, 2025, total disbursement for student loans covering school fees and upkeep stood at N32.8 billion.

Student loan applications since inception totaled 364,042, while 192,906 applications were approved.

The Fund said at the time, that it had disbursed up to N20 billion for institutional fees, and more than N12 billion as upkeep to 169,114 students.

Onyinye Nwachukwu

Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.