51 Universities Accused of Illegally Deducting Funds from Student Loans

51 Universities Accused of Illegally Deducting Funds from Student Loans

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51 Nigerian Universities Accused of Illegal Deductions from Student Loans

FUTA, MAU Confirm Deductions, Pledge Refunds as Other Institutions Remain Silent

ABUJA – A shocking revelation has emerged as 51 Nigerian tertiary institutions stand accused of illegally deducting funds from the Nigerian Education Loan Fund (NELFUND) scheme, exploiting students in the process.

Institutions Involved in the Scandal

The implicated schools include prominent universities such as:

  • Modibbo Adama University, Yola
  • Yaba College of Technology (YabaTech)
  • Lagos State University of Education (LASUED)
  • Federal University of Technology Akure (FUTA)
  • Ahmadu Bello University (ABU), Zaria
  • University of Nigeria, Nsukka (UNN)
  • Obafemi Awolowo University (OAU), Ile-Ife

How the Deductions Occur

Investigations reveal that these institutions allegedly deduct between ₦3,500 and ₦30,000 from each student’s institutional fee disbursed by NELFUND. Some examples include:

  • University of Jos (UNIJOS): Charged ₦145,000-₦150,000 instead of approved ₦130,000
  • Federal University, Lafia: Charged ₦148,500 instead of ₦120,000
  • ATBU, Bauchi: Charged ₦135,000 instead of ₦110,000

Students Speak Out

Affected students have shared harrowing experiences:

“UNN has still not refunded the school fees from last session. Many students applied for the loan but ended up paying school fees independently. UNN received the money from NELFUND and kept silent,” said Malvin Okeke, a UNN student.

Another student from Taraba State University reported receiving only ₦57,000 refund out of ₦120,000 paid as tuition.

Institutional Responses

Some institutions have acknowledged the issue:

  • FUTA: Admitted duplicate payments and promised refunds in batches
  • Modibbo Adama University: Confirmed about 300 affected students
  • YABATECH: Denied allegations, claiming payments are under CBN verification

NELFUND’s Position

The loan fund has disbursed over ₦50 billion to about 300 public tertiary institutions. Managing Director Akintunde Sawyer expressed frustration:

“Some institutions receive student loan disbursements directly into their accounts and refuse to notify the affected students… This is unethical and violates our principles.”

Calls for Reform

Education advocates are demanding:

  • Direct payments to students instead of institutions
  • Establishment of student oversight committees
  • Full refunds of illegal deductions
  • EFCC investigation into the matter

The National Association of Nigerian Students (NANS) has launched an investigation, while the National Orientation Agency (NOA) is gathering evidence for potential government action against erring institutions.

Credit: The Guardian

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