The House of Representatives has threatened to impose sanctions on universities and other tertiary institutions found violating the guidelines of the Nigerian Education Loan Fund (NELFUND), warning that any attempt to sabotage the student loan scheme will not go unpunished.
The House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing said monitoring and engagements with beneficiary institutions had uncovered instances in which schools retained the federal government’s Nigeria Education Loan Fund (NELFUND) disbursements for verified students, delayed refunds to those who had already paid tuition, or issued only partial refunds.
Committee Chairman Ifeoluwa Ehindero said the practices raise “serious compliance concerns,” weaken transparency and accountability, and could reduce students’ confidence in the loan system.
He added that delayed payment notifications and refunds may disrupt students’ academic progress and deepen their financial strain.
The committee directed institutions to ensure that funds received through NELFUND are applied “promptly and fully” for their intended purpose, including issuing appropriate refunds where students had already paid fees before disbursement.
It also instructed school leaders to ensure that bursars, information-technology directors and designated NELFUND desk officers comply with the fund’s financial and reporting requirements.
Institutions found to have deliberately breached theq guidelines could face sanctions under Section 5.6 of the NELFUND Guidelines.
Those measures may include suspension from receiving further loan funds, recovery of disbursed money and referral to law-enforcement or regulatory agencies.
The guidelines also provide for suspension where an institution fails to refund institutional charges or overpayments, engages in fraud related to institutional charges, or does not meet reporting requirements.
Ehindero stated that the committee would continue its oversight and would invoke the available sanctions where deliberate noncompliance is established.
The warning signals growing political pressure on tertiary institutions as the federal government seeks to ensure that loan resources reach eligible students rather than remain tied up in institutional accounts.
