NELFUND Under Fire for Disbursing Loans to Graduates Months After Completion

Graduates Report Receiving Student Loans and Stipends Post-Graduation

The Nigeria Education Loan Fund (NELFUND) is facing intense scrutiny after multiple graduates revealed they received student loans and upkeep stipends months after completing their academic programs. This controversial development has raised serious questions about the efficiency and management of the government-backed loan scheme.

Delayed Disbursements Create Financial Confusion

According to reports from Daily Punch, affected individuals shared how they applied for the student loan scheme before graduation but experienced significant delays in disbursement. Many were forced to independently settle their tuition fees, only to later discover NELFUND had processed payments after they had already left their institutions.

“I registered for NELFUND when I desperately needed funds to pay my second-semester final year fees,” one graduate explained. “When the approval didn’t come in time, I sourced the money myself. After graduating, I discovered NELFUND had paid my fees in full to the school.”

Systemic Issues and Growing Concerns

The situation has revealed apparent systemic failures in NELFUND’s operations. A University of Benin (UNIBEN) graduate reported: “I applied for the loan in my final days as a 400-level student. Last month, I suddenly got a N20,000 upkeep payment and discovered my loan had just been approved—months after graduation.”

Parents have also raised alarms, with Mr. Ibrahim reporting that his graduate son continues to receive upkeep payments despite completing studies two months ago. “We don’t know how to stop it. We need help,” he lamented.

Financial Discrepancies and Corruption Allegations

The loan scheme, designed to ease financial burdens on students, is now embroiled in allegations of mismanagement. Preliminary findings by the Independent Corrupt Practices Commission (ICPC) reveal that while NELFUND disbursed N100 billion in loans, only N28.8 billion reached intended beneficiaries, leaving N71.2 billion unaccounted for.

Institutional Response and Investigations

ICPC spokesperson Demola Bakare confirmed a Special Task Force has launched a full investigation into the alleged irregularities. “The Commission is committed to ensuring transparency and accountability in the disbursement of public funds,” Bakare stated.

The National Association of Nigerian Students (NANS) has expressed outrage, promising nationwide protests, while the Academic Staff Union of Universities (ASUU) awaits investigation results. “We hope all those involved will be brought to book,” said ASUU President Professor Emmanuel Osodeke.

Efforts to reach NELFUND’s Director of Corporate Communications, Mr. Oseyemi Oluwatuyi, for comment were unsuccessful at the time of reporting.

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