BREAKING : FG Summons VCs, CEO of Banks, To Report May 6 Over Alleged Diversion of N71 Billion Student Loan Fund

The Federal Government has summoned Vice -Chancellors of several Nigerian universities over allegations of unauthorized deductions from student loan accounts disbursed under the Nigerian Education Loan Fund (NELFund).

ValidViewNetwork had earlier reported that the Independent Corrupt Practices and other Related Offences Commission (ICPC) had commenced investigation into alleged irregularities surrounding the fund.

READ ALSO : https://validviewnetwork.com/icpc-investigates-alleged-irregularities-in-student-loan-schemen71-billion-under-scrutiny/

In a statement issued by the Federal Ministry of Education on Thursday, the government expressed “deep concern” over a report alleging that some universities had diverted part of the loan funds meant for students.

According to the statement signed by the Director of Press and Public Relations, an emergency meeting has been scheduled for May 6, 2025, between the Vice -Chancellors of the affected institutions and the Managing Director of NELFund to address the matter.

“The Federal Ministry of Education has received with deep concern a report published by The Guardian Newspaper on Tuesday, April 29, 2025, alleging some Nigerian universities to have made unauthorized deductions from funds disbursed under the Nigerian Education Loan Fund (NELFund) scheme,” the statement read.

Minister of Education, Dr. Marut Olatunji Alausa, described the allegations as “very disturbing and extremely concerning,” stressing that such financial misconduct, if confirmed, would be a serious breach of trust and policy.

“Any unauthorized deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFund was established,” the minister said.
“If proven true, such actions would constitute a gross violation of public trust and a betrayal of the government’s commitment to equitable access to education.”

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He emphasized that good governance remains central to the National Education Sector Reform Initiative (NESRI), and vowed that the ministry would take swift action.

“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately. Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions,” Dr. Alausa added.

“NELFund was created to expand students’ access to high-quality education and to support universities financially in a legal and sustainable way. Any attempt to exploit this fund is unacceptable and contradicts the President’s vision for inclusive human capital development,” he said.

To enforce accountability, the ministry announced plans to introduce a suite of new measures, including a compliance-tracking initiative, a public countdown webpage, and an Annual University Transparency Index in partnership with the Athena Centre.

Further, training programs will be held for bursars and ICT heads of universities and polytechnics to ensure proper management and openness through a planned open-portal initiative.

Officials from the Central Bank of Nigeria and senior executives of NELFund, including its CEO and Executive Director, have also been invited to provide documentation and clarifications as part of the ongoing investigation.