The Nigerian Education Loan Fund (NELFUND) has directed all tertiary institutions to refund tuition fees already paid by students who applied for and were verified under its loan scheme before disbursement.
It also warned against barring such students from academic activities due to delayed payments, emphasising that all institutions must honour their agreement with the agency.
Akintunde Sawyerr, NELFUND’s Managing Director and Chief Executive Officer, said on Wednesday, May 21, that universities and polytechnics should ensure smooth implementation of the student loan scheme.
“UNILAG has commenced a refund of fees paid by some students, and we expect other institutions to do the same,” said Sawyerr, represented by Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi, during a sensitisation campaign at the University of Lagos.
“This (directive) doesn’t apply to UNILAG alone. It applies to all institutions that have received institutional fees for beneficiaries of the student loan scheme.
“We want to also remind tertiary institutions across the country of their agreement with NELFUND not to bar students from academic activities due to non-payment of fees, particularly students who have applied for, and have been verified under the loan scheme.
“They signed a memorandum of understanding to that effect, and NELFUND expects them to keep to that agreement,” Oluwatuyi added.
As of yesterday’s evening, 597,337 students had registered for the scheme, with 547,954 successfully submitting applications, according to data published on the NELFUND website.
Sawyerr had told the House of Representatives Committee on Students Loan on May 7 that the agency had disbursed ₦54 billion so far.
At UNILAG, Vice-Chancellor Prof. Folasade Ogunsola, represented by Dean of Student Affairs Dr Musa Obalola, said the institution had begun processing refunds. She urged students to submit accurate bank details to speed up the process next week.
Ogunsola attributed the delays to a mismatch between the university’s academic calendar and NELFUND’s disbursement schedule.
Despite public universities charging modest fees, she noted that many students still struggle financially. “The zero-interest loan is a game-changer for access to quality education,” she said.
Wale Ogunleye, NELFUND’s Head of Information Technology, disclosed that 7,112 UNILAG students registered for the loan, with 5,566 approved and disbursements completed for 4,636.
At the University of Port Harcourt (UNIPORT), where NELFUND continued its campaign, Sawyerr, represented by Director of Administration Zino Ugboma, dismissed claims of fraud in the scheme.
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“The system may not be perfect, but we are trying to make it as humanly effective as possible. Sabotage and misinformation can ruin what should be a transformative programme for the country,” he said.
He added that UNIPORT now has 4,000 registered students under the loan scheme, the highest in Rivers State.
UNIPORT Vice-Chancellor Prof. Owunari Georgewill explained the relatively low interest in the scheme in the Southsouth and Southeast to deep-rooted cultural resistance to loans.
“Despite our advocacy, the word ‘loan’ is discouraging students from participating in the scheme. We can coin it to be a repayable grant which will make parents feel their children are not going to school through loan,” he said.
Georgewill added that UNIPORT’s annual tuition of ₦78,000 allows many families to avoid borrowing. Of the university’s 40,000 students, only 1,800 currently benefit from the scheme.
He also dismissed fraud claims as baseless.
NELFUND’s sensitisation team also visited Ignatius Ajuru University of Education in Port Harcourt.
At The Polytechnic Ibadan, the agency said it would begin disbursing loans to 6,004 students within two weeks.
Aliyu Muhammad, Director of Monitoring and Evaluation, said: “We are assuring you that in the next two weeks, your tuition will be credited to your school account. It will be followed by the ₦20,000 monthly stipend for each student.”
He noted that NELFUND is handling applications from over 300 institutions and more than three million applicants.
Muhammad added that a job portal had been launched to connect beneficiaries to automatic employment after graduation.
He also confirmed the agency’s collaboration with security and anti-corruption agencies to ensure transparency.
“You’ve heard allegations, and I guess at the same time, you’ve heard that these allegations are false. It is confirmed to be false. So the process is seamless and we don’t have any issues moving forward,” he said.