Reps Order Tertiary Institutions to Refund Fees to Students After NELFUND Disbursement

 The Nigerian House of Representatives has mandated all tertiary institutions across the country to refund tuition fees to students who had paid before receiving disbursements from the Nigerian Education Loan Fund (NELFUND). This directive aims to ensure that students are not financially disadvantaged due to delays in loan processing.

NELFUND, established under the Student Loans (Access to Higher Education) Act, 2024, provides interest-free loans to eligible Nigerian students pursuing higher education. The fund has disbursed over ₦54 billion, with ₦30 billion allocated to 303 federal tertiary institutions for tuition payments and ₦24 billion as stipends for approximately 293,000 students in public universities, polytechnics, and colleges of education.

Despite these efforts, reports have emerged of some institutions failing to inform students that their tuition fees had been paid by NELFUND, leading to confusion and financial strain. In response, the House of Representatives has instructed all tertiary institutions to refund fees to students who had paid before their loans were disbursed. Additionally, institutions are warned against barring verified loan beneficiaries from academic activities, including examinations, due to non-payment of tuition.

The House has also resolved to investigate alleged unethical practices in the disbursement of student loans, including diversion, non-disclosure, and mismanagement of funds. The investigation will be conducted by the House Committees on Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; and University Education.

Institutions like the University of Lagos (UNILAG) have begun processing refunds for students who had paid their fees before receiving loan disbursements. UNILAG reported that 7,112 students had registered for the loan, with 5,566 approved and disbursements made to 4,636 students.

Students seeking refunds are advised to apply through their institution's bursary department, providing necessary documentation such as payment receipts and account details.

This directive underscores the government's commitment to ensuring transparency and accountability in the administration of student loans, aiming to alleviate the financial burden on students and promote equitable access to higher education.