The Nigerian Education Loan Fund has intensified a NELFUND refund probe 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.
NELFUND Managing Director Akintunde Sawyerr disclosed the development during an interview with ARISE NEWS, saying the agency received numerous petitions from affected students across the country.
According to him, the investigations involve anti-corruption agencies, the National Association of Nigerian Students (NANS), internal auditors and other stakeholders to determine why some institutions have delayed or withheld refunds owed to students.
NELFUND refund probe targets 34 institutions
Sawyerr said the agency is examining about 34 tertiary institutions following a surge in complaints from beneficiaries of the student loan programme.
He explained that duplicate payments occurred because the Federal Government introduced the loan scheme after many students had already settled their tuition fees.
Once NELFUND later paid the same fees directly to the institutions, schools that received both payments became responsible for refunding the affected students.
He noted that the refund process rests entirely with the institutions, not NELFUND.
The agency, however, decided to launch investigations after many students reported that they had waited for months without receiving their money.
Students demand quick tuition refunds
The NELFUND refund probe follows growing frustration among students who say delayed refunds have created financial hardship.
Sawyerr said many beneficiaries or their parents borrowed money to pay school fees before the loan programme became operational.
As a result, they expected immediate reimbursement once NELFUND covered their tuition.
He stressed that many families are struggling financially and need the refunded money to repay debts or meet other essential needs.
According to him, while several institutions processed refunds promptly, others have failed to establish efficient systems for returning duplicate payments.
Nevertheless, he said every eligible student deserves to receive a refund without unnecessary delays.
Digital payment platform to improve transparency
To prevent similar challenges, NELFUND is developing a new payment system that gives students greater control over tuition disbursement.
Sawyerr revealed that the agency plans to introduce a token-based platform that allows beneficiaries to authorise tuition payments electronically.
Under the proposed arrangement, students will receive a digital payment token on their mobile phones.
When they visit their institution’s bursary department, they can activate the payment themselves.
The agency believes the system will improve accountability, reduce administrative bottlenecks and provide better tracking of tuition transactions.
NELFUND explains direct payment policy
As the NELFUND refund probe continues, Sawyerr defended the agency’s decision to pay tuition fees directly to institutions instead of students.
He explained that direct payments reduce the possibility of loan diversion.
According to him, transferring education loans directly to beneficiaries could increase the temptation to spend the money on other pressing needs.
By paying institutions, NELFUND ensures that government funds are used strictly for educational purposes.
However, he acknowledged that schools must promptly refund students whenever duplicate tuition payments occur.
Anti-graft agencies join investigations
The NELFUND refund probe has attracted the involvement of several oversight bodies.
Sawyerr disclosed that many students submitted complaints to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) alongside petitions sent to NELFUND.
He revealed that a five-member investigative team comprising NELFUND officials, internal auditors, anti-corruption personnel, EFCC representatives and NANS has already visited one institution accused of withholding refunds.
Although NELFUND lacks the legal authority to arrest or prosecute offenders, the agency said it will continue working closely with relevant authorities to ensure accountability.
Agency rejects excessive tuition hikes
Beyond delayed refunds, Sawyerr said NELFUND has also resisted attempts by some institutions to increase tuition fees after the student loan scheme was introduced.
He disclosed that the agency refused to process payments for schools that raised fees beyond acceptable levels.
According to him, NELFUND remains committed to protecting students from unfair financial burdens while ensuring public funds are properly managed.
He added that every complaint received is carefully reviewed, and investigative committees are established whenever irregularities are detected.
As the NELFUND refund probe progresses, the agency says it will continue strengthening its systems while working with relevant authorities to ensure students receive their refunds and that institutions comply with their obligations under the Federal Government’s student loan programme.
