Ministry of Education Probes Alleged Unauthorized Deductions from NELFund by Universities

The Federal Ministry of Education in Nigeria is taking swift action to address serious allegations of unauthorized deductions from student loans and Nigerian Education Loan Fund (NELFund) accounts by several universities. Following a report published by The Guardian Newspaper on April 29, 2025, the Ministry has launched a thorough investigation into these claims, signaling a strong commitment to transparency and accountability in the education sector.

Dr. Marut Olatunji Alausa, the Honourable Minister of Education, expressed deep concern over the allegations, describing them as “very disturbing and extremely concerning.” He emphasized that such actions, if proven true, would not only violate financial ethics but also undermine the core purpose of NELFund, which was established to ensure equitable access to quality education. “Any unauthorized deductions from student loans constitute a gross violation of public trust and a betrayal of the government’s commitment to education,” Dr. Alausa stated.

To address the issue, the Ministry has scheduled an urgent meeting on May 6, 2025, with the Vice Chancellors of the implicated universities and the Managing Director of NELFund. This meeting aims to investigate the allegations thoroughly, hold accountable those responsible, and reinforce the Ministry’s zero-tolerance policy toward financial malpractice. The Independent Corrupt Practices and Other Related Offences Commission (ICPC) is also conducting a parallel investigation into NELFund, further underscoring the gravity of the situation.

Dr. Alausa highlighted that NELFund, a flagship initiative under President Bola Ahmed Tinubu, was designed to expand access to high-quality education and provide sustainable financial support to both students and institutions. He stressed that any attempt to exploit these funds is unacceptable and runs counter to the administration’s vision for inclusive human capital development. “We are committed to ensuring that every kobo allocated for student welfare is used appropriately,” he affirmed.

As part of its broader National Education Sector Reform Initiative (NESRI), the Ministry is introducing several measures to enhance transparency and accountability. In collaboration with the Athena Centre, a compliance-tracking initiative and a countdown webpage will be launched to monitor institutional transparency. Additionally, an Annual University Transparency Index will be introduced to promote accountability and elevate the global standing of Nigerian universities. The Ministry will also organize a training program for bursars and ICT heads of universities and polytechnics to develop and maintain an open-portal initiative, further strengthening financial oversight.

The Ministry has assured Nigerians that this matter will not be overlooked, and those found culpable will face appropriate sanctions. This decisive response reflects the government’s dedication to protecting public funds and ensuring that students fully benefit from education support schemes, paving the way for a more transparent and equitable education system.