NELFUND Threatens Legal Action Against Schools Withholding Student Loan Refunds

The Nigerian Education Loan Fund (NELFUND) has warned tertiary institutions withholding refunds owed to students under the Federal Government’s student loan scheme that they risk legal action if the practice continues.

In a public notice issued on Monday, the Fund said some institutions had delayed or refused to refund students who paid their tuition fees before NELFUND later disbursed the same fees directly to the schools on their behalf. It also condemned reports of arbitrary increases in tuition and other institutional charges, describing the actions as contrary to the objectives of the student loan programme.

NELFUND Managing Director, Akintunde Sawyerr, said investigations revealed that some institutions received tuition payments from the Fund but failed to notify affected students or update their school fee records, while still demanding payment from the same students.

“This act of withholding critical financial information from students is not only unethical but a direct violation of the principles upon which NELFUND was established,” he said. “We will not hesitate to take legal action against any institution found engaging in such deceptive practices.”

The Fund said it had begun engaging affected institutions and relevant authorities to ensure eligible students receive their refunds promptly.

“NELFUND is engaging the affected institutions and relevant authorities to ensure that due refunds are made to eligible students and that institutional charges remain fair, transparent, and consistent with the objectives of the Scheme,” it stated.

As of March 2026, NELFUND said it had disbursed more than ₦206 billion in student loans to over 1.16 million beneficiaries across 270 public tertiary institutions nationwide. Of the total amount, ₦128.84 billion was paid directly to institutions as tuition fees, while ₦77.45 billion was disbursed to students as monthly upkeep allowances of ₦20,000 each.

The Fund reiterated its commitment to protecting beneficiaries and ensuring the student loan scheme delivers affordable access to higher education without imposing additional financial burdens on students.