Ministry of Education Calls Emergency Session Over NELFUND Loan Scandal

Alleged deductions and diversion of monies from student loans under the Nigeria Education Loan Fund (NELFUND) will be looked into by the Federal Ministry of Education.
An urgent meeting with the Managing Director of NELFund and the vice chancellors of the impacted universities has been set for May 6, 2025, according to a statement released Thursday by the ministry’s Director of Press and Public Relations.
It further stated that Dr. Marut Olatunji Alausa, the Minister of Education, called the accusations “extremely concerning and very disturbing.”

The Ministry promised that those found guilty would be punished accordingly.

According to the statement: “A report published by The Guardian Newspaper on Tuesday, April 29, 2025, alleging that certain Nigerian universities have made unauthorized deductions from funds disbursed under the Nigerian Education Loan Fund (NELFund) scheme has deeply concerned the Federal Ministry of Education.”

The claims were characterized as “very disturbing and extremely concerning” by the Honourable Minister of Education, Dr. Marut Olatunji Alausa, who emphasized that any unauthorized deductions from student loans not only violate financial ethics but also jeopardize the foundation upon which the NELFund was founded.

If confirmed, he said, such acts would be a flagrant betrayal of the government’s commitment to ensuring that all people had equal access to education and a serious breach of public confidence.

“Governance continues to be the main priority of our National Education Sector Reform Initiative (NESRI).”

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“We are dedicated to enhancing openness, encouraging prudent money management, and making sure that each kobo allotted for student welfare is used properly. I want to reassure Nigerians that this issue will not be ignored. Any guilty parties shall be subject to the proper penalties.

According to reports, the statement also restated President Bola Tinubu’s resolve to protect the fund’s integrity and guarantee that every Nigerian has access to high-quality education.

“NELFund was created to expand students’ access to high quality education and to support universities financially in a legal and sustainable way,” Dr. Alausa added, adding that President Bola Ahmed Tinubu, who established NELFund as a flagship initiative, made adequate budgetary provisions to support both students and institutions in a fair and transparent manner. The President’s goal of inclusive human capital development is incompatible with any attempt to misuse this cash.

The administration’s dedication to safeguarding public funds and guaranteeing that students benefit fully from all government education support programs was reiterated by the Honorable Minister.