Refund students for duplicate fees, NELFUND tells institutions

The Managing Director of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, has urged tertiary institutions to refund students who paid tuition fees before the disbursement of NELFUND loans.

Speaking during a media engagement in Abuja on Thursday to mark the one-year anniversary since the presidential launch of NELFUND, Sawyerr warned that failure by institutions to comply could erode public confidence and threaten the long-term viability of the student loan scheme.

He noted that the initiative, launched on May 24, 2024, was fast-tracked by President Bola Tinubu in response to a rising dropout rate among university students, many of whom faced the risk of abandoning their education due to financial constraints.

“We’ve received multiple petitions from students who paid under duress, only to find their fees had also been paid by NELFUND,” Sawyerr said.

“Institutions must refund this money. It’s disappointing that some schools have ignored this responsibility.”

Sawyerr also added that the issue has attracted the attention of Nigeria’s anti-corruption agencies, including the ICPC and EFCC, following student petitions and media exposés.

“We have been questioned as an organisation. The institutions too have been questioned. We are not shielding anyone. If they can’t refund the students directly, they should return the funds to us, and we’ll ensure the students get their money back.

“There are students out there desperately trying to start their lives, and some institutions are making it harder for them. I appeal to all schools: do the right thing, refund these students,” he said.

Sawyerr also reiterated that repayment of the student loan would only begin after beneficiaries secure employment and complete their National Youth Service Corps (NYSC), and the loan is interest-free, with beneficiaries required to repay only the exact amount disbursed to them.

He explained that once employed, 10 per cent of a beneficiary’s monthly income would be automatically deducted by the employer and remitted to NELFUND, following confirmation via the fund’s employment register.

“If you don’t have a job, you don’t pay. And when you eventually get a job, your repayment starts fresh.

“Once employed, 10 per cent of the beneficiary’s monthly income is deducted automatically by the employer and remitted to NELFUND, following verification through the NELFUND employment register.

Applicants who want to benefit from the fund must have secured admission into a federal university, polytechnic, college of education, or vocational school and must possess a valid JAMB admission letter. Additional requirements include being a Nigerian citizen with a National Identification Number (NIN) and a Bank Verification Number (BVN). The loan is strictly for first-time, full-time students pursuing their first higher education qualification, excluding postgraduate applicants.

According to data from the scheme, as of July 17th, 675,212 students have registered, with 645,692 applicants, and 396,252 students have benefited so far from the scheme since its launch.