Lawmakers say some institutions keep loan funds and delay or part-pay refunds to students
The House of Representatives has warned tertiary institutions that hold back student loan money. The lawmakers say some schools are not following the rules of the Student Loan Scheme.
The House Committee on Student Loans, Scholarships and Higher Education Financing issued the warning. Its chairman, Hon. Ifeoluwa Ehindero, said recent monitoring exercises found several beneficiary institutions falling short of the requirements.
Complaints Against Schools
The committee listed three main problems:
- Some institutions keep funds that NELFUND released for verified students.
- Some delay refunds to students who paid their tuition before NELFUND made its disbursement.
- Others refund only part of what eligible students are owed.
Ehindero called these practices serious compliance concerns. According to him, they weaken transparency and accountability. They also shake students’ confidence in the scheme.
He added that long delays in handling payment notifications and refunds can disrupt students’ studies. They can also deepen the financial hardship students already face.
Directive to School Heads
The committee told heads of all beneficiary institutions to act. It said bursars, ICT directors and NELFUND desk officers must observe strict financial discipline.
It also ordered every institution to apply NELFUND money promptly and fully. The funds must go to the purpose they were released for.
Sanctions and Closer Oversight
The lawmakers said they will continue oversight of the scheme. Institutions that deliberately break the guidelines will face sanctions under Section 5.6 of the NELFUND Guidelines.
The committee also promised targeted oversight measures. These will strengthen enforcement, improve data transparency and reinforce accountability.
The panel said it wants the government’s plan to widen access to affordable higher education to succeed. It stressed that no student should lose funds legitimately meant for their education.
