NELFUND Investigates 34 Institutions Over Delayed Student Loan Refunds as EFCC Joins Probe
The Nigerian Education Loan Fund (NELFUND) has launched an investigation into 34 tertiary institutions over allegations that they failed to refund students whose tuition fees were paid twice under the Federal Government’s student loan scheme.
The development follows growing complaints from students who said they paid their tuition fees to meet school registration deadlines, only for NELFUND to later pay the same fees directly to their institutions after their loan applications were approved.
To address the issue, NELFUND has constituted a five-member investigation team, comprising internal auditors and operatives of the Economic and Financial Crimes Commission (EFCC), to review the complaints and determine whether the affected institutions complied with their obligation to refund excess payments.
The investigation marks one of the most significant oversight actions since the student loan programme became operational and is expected to provide clarity for thousands of students awaiting refunds.
Why NELFUND Is Investigating 34 Institutions
According to NELFUND, the investigation was prompted by an increasing number of complaints from students who claimed they had not received refunds after their institutions received duplicate tuition payments.
The issue arose because many students paid their school fees while waiting for their student loan applications to be processed. Once the applications were approved, NELFUND transferred tuition fees directly to the institutions, resulting in some schools receiving payment from both the student and the loan scheme.
Under such circumstances, institutions are expected to refund the student’s initial payment.
While several institutions reportedly processed these refunds without delay, others have yet to do so, leading to frustration among affected students and prompting the agency to begin a formal review.
How the Double Tuition Payment Happened
The duplicate payment issue is linked to the rollout of the Federal Government’s student loan programme.
Rather than waiting for the start of a new academic session, the programme was introduced midway through an ongoing session. As a result, many students faced a difficult choice: delay payment and risk missing registration deadlines or pay their tuition themselves while awaiting loan approval.
Many opted to borrow money from parents, relatives, friends, or private lenders to complete registration on time.
When NELFUND later approved their applications and paid the tuition directly to their schools, some institutions ended up receiving two separate payments for the same student’s fees.
This unexpected situation created the need for schools to refund the earlier payments made by students.
What NELFUND Says About the Refunds
NELFUND says the responsibility for issuing refunds lies with the institutions that received the duplicate payments.
According to the agency, once tuition fees are successfully transferred to a school under the student loan scheme, any previous payment made by the student becomes refundable by the institution.
However, the agency acknowledged that refund processing has not been consistent across all schools.
While some institutions reportedly established procedures to identify affected students and return the excess funds promptly, others have been slower to respond.
NELFUND noted that delays do not necessarily imply wrongdoing, as some institutions may still be developing administrative processes for handling refunds.
Nevertheless, every complaint submitted by students is being reviewed.
EFCC and Auditors Join Investigation
To strengthen the credibility of the investigation, NELFUND has included officials from the Economic and Financial Crimes Commission (EFCC) alongside its internal audit team.
The review will assess complaints received from students, examine payment records, and verify whether institutions that received duplicate tuition payments have fulfilled their refund obligations.
Many affected students have also submitted petitions directly to anti-corruption agencies, increasing pressure for a transparent resolution.
Although NELFUND can investigate complaints and engage institutions, it has acknowledged that it does not have direct legal authority to compel schools to issue refunds or prosecute officials found to have acted improperly.
Where necessary, the agency may collaborate with relevant authorities responsible for enforcing financial accountability.
New Payment System Could Prevent Future Refund Issues
To reduce the chances of similar problems occurring in future academic sessions, NELFUND is exploring improvements to its payment process.
One proposal under consideration is a tokenised payment system, which would allow students to authorise tuition payments electronically before funds are released to their institutions.
Such a system could improve payment verification, reduce administrative errors, and minimise cases of duplicate tuition payments.
NELFUND maintains that paying tuition directly to institutions remains the safest approach because it helps ensure that education loans are used for their intended purpose.
Direct payment also reduces the risk of loan funds being diverted to non-educational expenses.
Concerns Over Rising Tuition Fees
The refund investigation is not the only issue attracting NELFUND’s attention.
The agency has also expressed concern over reports that some institutions increased their tuition fees after the introduction of the student loan scheme.
According to NELFUND, institutions are expected to maintain reasonable fee structures and should not use the availability of government-backed education loans as justification for excessive fee increases.
The agency says it has, in some cases, declined to process payments for institutions whose fee adjustments exceeded acceptable limits.
The move is intended to protect students from unnecessary financial burdens while ensuring the sustainability of the student loan programme.
What Affected Students Should Do
Students who believe they are entitled to a refund should continue engaging with their institutions while keeping proper records of all tuition payments and communications.
Important documents to retain include:
- Tuition payment receipts
- NELFUND approval notifications
- Evidence of payments made by the institution
- Email correspondence and official letters
- Student registration records
These documents may prove useful if additional verification becomes necessary during the investigation.
Students experiencing prolonged delays may also consider reporting their cases through the appropriate official channels provided by NELFUND and other relevant authorities.
Why This Investigation Matters
The Federal Government introduced the student loan programme to improve access to higher education by reducing the financial barriers faced by students.
For many beneficiaries, the scheme has provided an opportunity to remain in school despite rising tuition costs.
However, delays in processing legitimate refunds can create additional financial pressure, particularly for students who borrowed money from family members or private sources to meet registration deadlines.
Resolving these complaints promptly will help strengthen confidence in the programme and reassure students that the system is capable of addressing implementation challenges.
It also highlights the importance of transparency and accountability among participating institutions as the student loan scheme continues to expand across Nigeria
Final Thoughts
The ongoing investigation into 34 tertiary institutions represents an important step in addressing concerns raised by students affected by duplicate tuition payments under the NELFUND student loan scheme.
While many institutions have reportedly processed refunds without difficulty, others remain under review as authorities work to establish what happened and ensure that affected students are treated fairly.
As the investigation progresses, students are encouraged to stay informed through official NELFUND announcements, keep records of all tuition-related transactions, and report any unresolved refund issues through the appropriate channels.
With the involvement of auditors and the EFCC, the outcome of the investigation could shape how tuition payments and refunds are managed under Nigeria’s student loan programme going forward.
???? Stay Empowered with ZOEEB
Join our community for daily updates on jobs, skills, and financial growth opportunities.
