NELFUND to Sanction Nigerian Universities Involved in Student Loan Fraud
The Nigerian Education Loan Fund (NELFUND) has warned that it will impose strict sanctions on any university or tertiary institution found complicit in fraudulent practices related to the federal government’s student loan scheme.
According to NELFUND’s Managing Director, the agency has uncovered attempts by some individuals and institutions to manipulate records in order to secure unqualified access to student loans. This fraudulent activity, he said, undermines the government’s effort to provide financial support to deserving Nigerian students.
Background of the Student Loan Scheme
The student loan initiative was introduced by the federal government to promote equal access to education by offering interest-free loans to students in public tertiary institutions. Managed by NELFUND, the program aims to remove financial barriers, ensuring that capable students are not denied higher education due to lack of funds.
Under this scheme, students can apply for funding to cover tuition, learning materials, and living expenses. However, the scheme is strictly regulated to ensure that only eligible candidates benefit and that repayment terms are enforced after graduation.
Nature of the Alleged Fraud
Recent reports indicate that certain institutions have allegedly attempted to inflate student enrollment figures or falsify academic records in order to access additional funds. In some cases, there have also been allegations of non-existent students being included on loan application lists, raising serious concerns about transparency and accountability.
NELFUND officials emphasized that any such misconduct would be met with severe consequences, including financial penalties, blacklisting of the institution, and possible legal prosecution of those directly involved.
Government’s Warning to Universities
“This scheme is designed to assist genuine Nigerian students, not to enrich institutions or individuals engaging in fraudulent activities,” the NELFUND MD stated. He stressed that any university caught engaging in malpractice would not only lose access to the scheme but could also face further sanctions from federal authorities.
The agency has also urged university administrators to put in place internal audit mechanisms to prevent abuse and ensure that only qualified students apply through official channels.
Implications for Students and Institutions
If fraud persists, it could undermine public confidence in the program and discourage future government funding. For students, this means stricter verification requirements during application and disbursement. For institutions, it highlights the need for transparency in record-keeping and cooperation with regulatory bodies.
Education experts believe the government must also improve its digital verification systems to make fraud nearly impossible. Some have called for collaboration with bodies such as the Joint Admissions and Matriculation Board (JAMB) and the National Universities Commission (NUC) to authenticate enrollment records.
The Way Forward
To safeguard the integrity of the loan scheme, NELFUND has announced that periodic audits will be conducted. Universities and polytechnics are expected to submit accurate data, while students must provide verifiable information to qualify for funding.
The agency has assured Nigerians that the loan program will continue to support millions of students but insists that only those who genuinely qualify will benefit. Fraudulent practices, it reiterated, will not be tolerated under any circumstances.
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