Nigeria’s anti-corruption agency launched a sweeping investigation into the Nigeria Education Loan Fund (NELFUND) on May 1, 2025, probing discrepancies involving N71.2 billion unaccounted for from a N100 billion federal allocation for student loans.
The inquiry targets allegations that 51 tertiary institutions made unauthorized deductions of N3,500 to N30,000 from students’ institutional fees, exploiting the scheme meant to enhance access to higher education. Preliminary findings revealed that only N28.8 billion reached students, raising concerns about mismanagement and potential fraud. The probe, triggered by a media report, has summoned key figures, including the Budget Office Director-General, the Accountant-General, Central Bank officials, and NELFUND’s leadership, to provide documentation and clarify financial records.
The investigation uncovered that NELFUND received N203.8 billion as of March 19, 2024, including N10 billion from the Federation Allocation Account, N50 billion from anti-corruption recoveries, and N143.8 billion from the Tertiary Education Trust Fund. However, only N44.2 billion was disbursed to 299 institutions, benefiting 293,178 students, leaving a significant gap in the financial trail.
The agency’s special task force is now examining beneficiary institutions and individual recipients to trace the missing funds. Allegations suggest some schools collaborated with banks to delay payments, profiting from the delays, while others imposed illegal fees, undermining the loan scheme’s goal of supporting underprivileged students.
Introduced in June 2023 and revised in April 2024, the student loan program aims to cover tuition and educational expenses for all students in public tertiary institutions, regardless of income. The scheme’s expansion to include vocational centers has disbursed funds to nearly 300 institutions, but the reported discrepancies threaten its credibility.
The investigation’s scope includes analyzing financial flows and interviewing stakeholders to establish accountability. With Nigeria’s education sector grappling with 20 million out-of-school children and 63% poverty rates, the probe underscores the urgency of safeguarding public funds meant to empower youth and drive economic growth. Further updates are expected as the agency deepens its scrutiny.