RismadarVoice Reporters
October 8, 2026
The House of Representatives has warned tertiary institutions participating in the Nigerian Education Loan Fund (NELFUND) scheme against withholding students’ funds, delaying refunds or engaging in other practices that violate the programme’s financial guidelines.
The warning was issued by the Chairman of the House Committee on Student Loans, Scholarships and Higher Education Financing, Ifeoluwa Ehindero, following reports of irregularities in the administration of funds disbursed to beneficiary institutions.
Ehindero said monitoring exercises and engagements with participating institutions had revealed instances of non-compliance, particularly in the handling of payments and refunds meant for students.
According to him, some institutions allegedly failed to promptly process funds received on behalf of verified beneficiaries, while others delayed or made incomplete refunds to students who had already paid their tuition fees before NELFUND disbursements.
He expressed concern that such practices could undermine the objectives of the student loan programme and place additional financial pressure on beneficiaries.
The committee chairman explained that funds released through NELFUND must be administered transparently and strictly in accordance with established guidelines.
He warned that withholding students’ entitlements or delaying legitimate refunds could disrupt academic activities and defeat the Federal Government’s efforts to improve access to higher education.
Ehindero consequently directed vice-chancellors, rectors, provosts and other heads of participating institutions to ensure that their bursars, ICT directors and designated NELFUND desk officers comply fully with the scheme’s financial requirements.
He emphasised that institutions must promptly apply funds received for their intended purposes and ensure that students entitled to refunds receive the full amounts without unnecessary delays.
The lawmaker further warned that deliberate violations could attract disciplinary and regulatory measures under Section 5.6 of the NELFUND Guidelines.
Such measures could include suspension of defaulting institutions from participation in the student loan scheme, recovery of improperly managed funds and referral of serious violations to appropriate regulatory or law enforcement agencies.
The committee maintained that institutions entrusted with public education funds must demonstrate accountability and ensure that beneficiaries are not subjected to avoidable financial difficulties.
Ehindero reaffirmed the committee’s commitment to continuous legislative oversight of NELFUND operations, including monitoring disbursements, institutional compliance and the treatment of student beneficiaries.
He said the House would continue working to ensure that the programme fulfils its purpose of providing financial assistance to eligible Nigerian students while promoting transparency in the management of education financing.
The committee also urged participating institutions to strengthen their internal processes for payment reconciliation, student notifications and refunds to prevent further complaints and ensure the effective implementation of the scheme.
