The National Association of Nigerian Students (NANS) has called on the Federal Government to take action against tertiary institutions accused of withholding refunds owed to students who paid their school fees before receiving payments from the Nigerian Education Loan Fund (NELFUND).
The students’ body said some institutions had received NELFUND payments for students who had already paid their tuition from personal or borrowed funds but had allegedly failed to return the money to the affected beneficiaries.
The issue has become one of the concerns surrounding the implementation of Nigeria’s student loan programme, which was introduced to reduce the financial burden of higher education on students and their families.
NANS President Akinteye Babatunde urged President Bola Tinubu to investigate institutions allegedly involved in withholding students’ refunds and to sanction officials found responsible. He also called for the publication of the names of institutions that have allegedly failed to refund students.
According to the students’ body, some students were compelled to find money to pay their tuition while waiting for their NELFUND applications to be processed. When the loan payments were eventually made directly to their institutions, the students were expected to receive refunds for the fees they had previously paid.
NANS alleged that some students had been waiting for months to receive their money.
The association argued that the situation defeats the purpose of the student loan programme because many beneficiaries who paid their fees before receiving the loan had borrowed money from relatives, friends or financial institutions.
For such students, the expected refund is not simply extra money. It represents funds that can be used to repay the people or institutions from whom they borrowed.
NELFUND Managing Director Akintunde Sawyerr had earlier acknowledged that the organisation was investigating complaints involving institutions and students. He disclosed that about 34 institutions were being examined following petitions from affected students.
Sawyerr explained that the problem partly arose because the student loan programme began while academic sessions were already underway. Consequently, some students had already paid their tuition before their NELFUND loans were approved.
This created situations where institutions could receive payments from both students and NELFUND for the same tuition obligations.
The NELFUND boss explained that the institutions receiving the double payments were responsible for refunding students.
However, he also acknowledged a limitation facing the agency. According to him, NELFUND does not have the legal powers to arrest or prosecute institutions that fail to refund students.
Some affected students have reportedly taken their complaints to anti-corruption agencies, including the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission.
The dispute has also generated different responses from universities.
For example, the University of Calabar rejected allegations that it had failed to refund NELFUND beneficiaries. The institution said it had refunded 1,089 students in nine batches and was processing additional applications. It also introduced an automated refund portal to improve the refund process.
The development highlights the difficulties that can arise when a large-scale education financing programme is implemented across hundreds of institutions.
NELFUND was created to improve access to higher education by helping eligible Nigerian students meet the cost of tuition and providing upkeep support. The official student loan platform describes the initiative as a programme designed to reduce financial barriers to higher education.
For students, however, delays in refunds can create serious financial difficulties, particularly for those who borrowed money to pay their fees.
NANS has therefore continued to pressure the Federal Government and relevant institutions to ensure that students receive money that is legitimately due to them.
The controversy also underscores the importance of transparency in the administration of the student loan scheme. Students need clear information about when their applications have been approved, when institutions have received payments and when refunds will be processed.
As investigations and refund processes continue in affected institutions, attention remains focused on ensuring that the NELFUND scheme delivers its intended benefits without creating additional financial difficulties for students.
The Federal Government, NELFUND and tertiary institutions are consequently expected to strengthen coordination and accountability to prevent similar problems from affecting future beneficiaries.
