The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions against fraudulent practices in the management of student loans, stressing that offenders will face strict sanctions, including suspension from future disbursements.
The warning was contained in the latest operational guidelines of the student loan scheme, which set out clear measures to address irregularities such as falsifying student records, collusion between students and institutions to secure ineligible loans, and failure to refund excess funds.
Some institutions have previously come under scrutiny for loan overpayments and failure to return duplicate payments to the fund. The new guidelines now make it mandatory for schools to refund any excess within 30 days, or within a timeframe determined by the NELFUND board.
According to the guidelines, institutions found guilty of breaching the Student Loan Act 2024 or the provisions of the scheme will be suspended from further disbursements. NELFUND also stated that disbursements may be temporarily halted while allegations of misconduct are being investigated.
The fund emphasised that existing students already benefiting from the scheme will not be affected by institutional sanctions, except in cases directly involving overpayments or duplicate payments.
The move signals NELFUND’s attempt to tighten accountability within the scheme and safeguard the integrity of the student loan programme, which was introduced to expand access to higher education in Nigeria.
