N266m NELFUND Funds Recovered as Reps Panel Probes Institutions Over Sharp Practices

N266m NELFUND Funds Recovered as Reps Panel Probes Institutions Over Sharp Practices

The Chairman of the House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing, Ifeoluwa Ehindero, has disclosed that about N266 million belonging to the Nigerian Education Loan Fund (NELFUND) has been recovered from a higher institution, as the National Assembly intensifies its probe into alleged sharp practices by some beneficiary schools.

Ehindero made this known recently in Abuja during an interactive session with executive members of the Association of Corporate Online Editors (ACOE), who paid him a courtesy visit at his office.

He, however, commended the performance of the Nigerian Education Loan Fund, describing the agency as a key intervention by the federal government aimed at removing financial barriers to higher education for Nigerian youths.

The lawmaker noted that although the agency is barely a year old, it has recorded significant milestones in student loan disbursement across the country.

“I am quite satisfied with the overall performance of NELFUND. One has to understand that the agency is barely a year plus. NELFUND started in 2024 and today they have over a million applications and they have disbursed over N116 billion in institutional fees and stipends to students as of October 2025, with about 983,000 beneficiaries,” he said.

According to him, verifying nearly a million applicants and processing disbursements to students across more than 265 institutions within such a short period is a remarkable achievement.

Ehindero also praised Bola Ahmed Tinubu for ensuring adequate funding for the scheme, saying the President has demonstrated strong commitment to improving access to education.

“And of course, the President is also committed to the success of the programme. The President has mandated that funds should always be available and that the issue of no funds should not get to NELFUND. NELFUND must be properly funded so that Nigerian students won’t get stuck,” he said.

He added that under the new tax framework, the loan fund now receives a larger share of development levy resources, a move he said further reflects the administration’s commitment to education as a catalyst for national development.

The lawmaker, however, identified **the management of disbursed funds by beneficiary institutions** as a major challenge confronting the scheme.

He explained that while NELFUND’s responsibility is to process applications and disburse funds to schools on behalf of eligible students, the handling of the funds by some institutions has raised concerns.

“NELFUND as an agency has to deal with over 265 institutions. So the challenge now is that NELFUND cannot be responsible for the actions of these institutions. NELFUND’s main objective is to accept applications, process them and disburse in favour of eligible Nigerian students,” he said.

Ehindero revealed that the committee’s oversight activities uncovered cases where institutions delayed or mishandled the funds meant for students, prompting investigations.

“With our oversight, I’m happy to even tell you that about eleven schools have refunded money back to NELFUND. A particular school refunded about N266 million and there are still a few of them that we are still on their neck,” he added.

He also urged the loan fund to fully digitalise its disbursement process to enhance transparency and give students direct visibility over their loan status.

According to him, a digital dashboard that connects the NELFUND portal with institutional systems would enable students to confirm payments, activate their school portals and register for courses without unnecessary delays.

Ehindero said such reforms would strengthen accountability and ensure that the student loan programme delivers its intended benefits to Nigerian students.