Reps threaten sanctions against institutions violating NELFUND rules

The House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing has warned tertiary institutions that violate the guidelines for the management of the Nigerian Education Loan Fund (NELFUND) face sanctions. Committee Chairman Ifeoluwa Ehindero announced this during a statement released on Friday.

Ehindero highlighted instances where beneficiary institutions had withheld funds allocated to verified students, delayed refunds for those who had already paid their tuition before NELFUND disbursed funds, and offered partial refunds to eligible beneficiaries. Such practices, according to the committee, threaten the transparency and accountability of the loan scheme, erode students' trust in the system, and could impede equitable access to higher education funding.

Ehindero emphasized that these violations could disrupt students' academic progress and exacerbate their financial difficulties. The committee has summoned heads of beneficiary institutions to ensure their bursars, IT directors, and NELFUND officers strictly follow the financial guidelines for fund management. Institutions found to have deliberately disregarded the guidelines could face sanctions under Section 5.6 of the NELFUND Guidelines, which may include suspending the institution from the scheme, recovering funds, and referring the case to law enforcement and regulatory agencies.

The committee pledged to intensify its oversight of the scheme to maintain transparency, accountability, and proper fund management, and reaffirmed its commitment to ensuring that eligible students receive the financial aid provided for their education under the Federal Government's student loan program.