The Nigerian Education Loan Fund (NELFUND) has launched investigations into 34 tertiary institutions over allegations that they failed to refund students whose tuition fees were paid twice under the Federal Government’s student loan scheme, Managing Director Akintunde Sawyerr has disclosed.
Key Highlights:
- NELFUND is investigating 34 tertiary institutions over alleged double tuition payment refunds.
- Probe follows petitions from affected students across the country.
- EFCC, ICPC, NANS and internal auditors are collaborating in the investigations.
- NELFUND says institutions, not the agency, are responsible for refunding duplicate payments.
- Agency plans a new tokenised payment system to improve transparency.
- NELFUND says it has no legal powers to compel refunds or prosecute defaulting institutions.
Speaking during an interview with ARISE NEWS on Sunday, Sawyerr said the investigations were initiated following a surge in complaints from students who claimed they had not received refunds after both they and NELFUND paid their tuition fees.
“I can tell you that there are about 34 institutions that we are looking at at the moment because of the number of petitions we have received,” he said.
Sawyerr explained that the problem arose because President Bola Tinubu directed the commencement of the student loan scheme midway into an academic session, leading many students to pay their tuition before NELFUND later settled the same fees directly with their institutions.
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“What happened is that a lot of schools got double payment. Some from the students and some from us. The refund process is entirely out of our hands. It is the institutions that received the double payments that are obliged to refund the students,” he stated.
According to him, many affected students borrowed money from family members or other sources to pay their school fees and have been relying on the refunds to repay those debts.
“Most students in this country do not have sufficient financial resources. When they pay for their education and later receive a loan for the same tuition, they naturally expect to receive a refund,” Sawyerr said.
He acknowledged that while several institutions had processed refunds promptly, others had failed to do so.
“Some have handled the process responsibly, while others have not. I would rather not conclude that the delays are intentional because, in some cases, institutions simply did not have an established refund process,” he added.
The NELFUND Managing Director disclosed that the agency is developing a tokenised digital payment system that will allow students to authorise tuition payments electronically using their mobile devices.
“We’re looking at a tokenised system where students can initiate tuition payments directly from their phones at the bursary through a secure digital process,” he explained.
Sawyerr reiterated that NELFUND deliberately pays tuition fees directly to educational institutions instead of students to minimise the risk of diversion of funds.
“We deliberately chose not to pay tuition loans directly to students because doing so could create opportunities for misuse of the funds,” he said.
He, however, admitted that NELFUND lacks the statutory authority to compel institutions to refund students or prosecute erring officials.
“We do not have powers of arrest or prosecution. Our hands are tied in that regard,” he noted.
According to Sawyerr, many frustrated students have reported the matter not only to NELFUND but also to anti-corruption agencies, including the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
He disclosed that one ongoing investigation involves a joint team comprising NELFUND officials, internal auditors, EFCC personnel and representatives of the National Association of Nigerian Students (NANS).
“A five-member team has already visited one institution accused of withholding refunds to conduct an investigation,” he said.
On concerns about rising tuition fees, Sawyerr revealed that NELFUND had refused to pay institutions that increased their fees beyond acceptable levels after the student loan programme commenced.
“Some institutions attempted to raise their fees after the scheme started because payments became easier. We refused outright to pay institutions that introduced unjustifiable fee hikes,” he stated.
He assured students that the agency would continue to investigate every reported case and strengthen its monitoring mechanisms to improve transparency and accountability in the student loan programme.
“We take every complaint seriously. Whenever there is any indication that something is wrong, we set up an investigation because we are constantly learning and improving the system,” he said.
