Probe Fraud In NELFUND Scheme, ActionAid Tasks Nigerian Govt

ActionAid Nigeria (AAN) has demanded an immediate investigation and suspension of all institutional heads involved in the alleged fraud in the Nigerian Education Loan Fund (NELFUND) scheme.

ActionAid Nigeria, in a signed statement by its Country Director, Andrew Mamedu, on Wednesday expressed outrage at the revelations of systemic exploitation of the Nigerian Education Loan Fund (NELFUND) scheme, with over 50 tertiary institutions across the country accused of inflating fees, withholding refunds, and financially sabotaging students who sought relief through the student loan programme.

Mamedu stated, “This is not merely administrative misconduct; it is corruption in education institutions at its core.”

He lamented: “These institutions have not only betrayed public trust, but have actively undermined the very ideals of transparency, equity, and social justice that education should embody.” Fee increases ranging from N2,500 to N30,000 per student may appear insignificant on paper, but when multiplied by tens of thousands of students, this abuse escalates into a multimillion-naira scandal. Based on ActionAid Nigeria’s conversations with students, this does not appear to be an isolated incident. “It is a coordinated, normalised pattern of corruption.”

He stated, “This scandal is a harsh reminder that when institutions lose their soul, students become collateral damage.

“These are young Nigerians who turned to the government’s loan scheme out of desperation rather than convenience, only to be exploited in the process. Institutions tasked with both academic and moral leadership have shamelessly commercialised education.

“ActionAid Nigeria demands an immediate investigation and suspension of all institutional heads involved in this fraud by their respective Governing Councils, and urges the Minister of Education and President Bola Ahmed Tinubu not to remain silent or passive if these Councils fail to act decisively.

” If they are found guilty, they must be dismissed from public service and prosecuted immediately.

“We also urge the EFCC and ICPC to go beyond mere observation or investigation and take decisive legal action.”

He also stated: “One would have thought that paying institutions directly was the more efficient and secure route to reduce the risks of student abuse and ensure timely tuition payments.”

However, these public institutions have once again demonstrated their inability to hold individuals and institutions accountable, transforming a support system into one ripe for exploitation.

Mamedu went on to say, “While ActionAid Nigeria applauds NELFUND and the National Orientation Agency (NOA) for taking the bold step of naming institutions involved in student loan mismanagement, naming is not enough to ensure justice.

We urge NELFUND and the Federal Ministry of Education to conduct independent forensic audits of all implicated schools, mandate public disclosure of how funds were received and used, provide full refunds to all affected students, and establish student-led monitoring mechanisms to prevent future misuse.

“ActionAid Nigeria also calls on the National Orientation Agency (NOA) and the Federal Ministry of Education to ramp up nationwide awareness campaigns so that students are not left in the dark about the loans they received, the institutions that benefited, and the rights they must now reclaim.”

Mamedu stated, “This is about more than just student loans.” We must work to create a country where dignity, fairness, and equal access to opportunities, services, and resources are not negotiable.

We also join activists, civil society, and concerned citizens in demanding that this scandal not be hidden behind bureaucracy.”