The Federal Government has directed all tertiary institutions in the country to allow students who have applied for student loans to sit for their examinations without any restrictions.
Education Minister, Dr. Tunji Alausa, gave the directive on Wednesday, May 15, 2025, after a high-level meeting in Abuja with officials from the Nigerian Education Loan Fund (NELFUND), vice chancellors, and heads of tertiary institutions.
This comes amid complaints from students and institutions over confusion and discrepancies in the student loan disbursement process.
To address these concerns, the government has set up a committee comprising representatives from the Ministry of Education, NELFUND, the National Universities Commission (NUC), and top university officials. The committee has three weeks to submit its report.
According to Dr. Alausa, the committee’s work will focus on streamlining and standardising how fees are charged and how loan payments are disbursed. Institutions will also be required to use uniform terminology for charges, even though actual amounts may differ.
He explained that many of the reported issues, including alleged misappropriation of student loans by schools and fee discrepancies, stem from poor communication.
“The service charges deducted by universities were mistaken for missing funds. Once NELFUND pays, the university deducts a service charge, and refunds the balance to the student. That’s where the confusion comes from,” he said.
The Minister also dismissed recent reports by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which claimed that NELFUND could not account for ₦71.2 billion. He insisted the system is working and being improved.
“We’re not just looking to fix problems—we’re setting standards so students and institutions know exactly what to expect,” Alausa stated.
The government hopes these reforms will ensure smoother loan disbursements, prevent financial misunderstandings, and protect students from being unfairly barred from academic activities due to administrative delays.
