Premium Times reported on 8 October 2026 that lawmakers in the House of Representatives warned participating institutions against manipulating loans from the Nigerian Education Loan Fund (NELFUND), the federal agency that pays student loans, mainly tuition, to approved schools. The lawmakers said some beneficiary institutions have not administered NELFUND money properly. They also warned that deliberate non-compliance could lead to suspension from the scheme, recovery of funds and referral to law enforcement agencies.
Leadership reported the same day that the House Committee on Student Loans, Scholarships and Higher Education Financing warned against non-compliance in how the scheme is managed and administered. Leadership's report says some institutions withhold funds that NELFUND has released for verified beneficiaries, and its title also points to delayed refunds. For students, this matters because a delay on the school's side can leave a loan recipient owing money or unable to access services they have already paid for.
The warning follows similar complaints earlier in 2026. Channels Television and ThisDay reported around 29 June 2026 that NELFUND itself had criticised tertiary institutions over withholding tuition refunds and arbitrary fee increases. Technext24, Vanguard, the Guardian and Tribune carried similar reports around the end of June 2026. In practice, the concern is a mix of two issues: money not reaching students who are owed it, and schools charging more than they should.
The pattern is not new. In May 2025, Nairametrics, BusinessDay, ThisDay, Vanguard, Tribune and the Guardian reported a House probe into alleged fraud or unethical practices in how student loans were paid out, and BusinessDay reported that schools were asked to refund tuition fees. In July 2025, Vanguard reported that NELFUND told institutions to refund students for duplicate fees. Students who paid fees themselves and later had them covered by a loan are the group most likely to be owed refunds.
The student body National Association of Nigerian Students (NANS) has also published lists of schools it says have not refunded students. Legit.ng reported a list of 41 institutions around July 2026, and Ripples Nigeria reported 39 institutions around the same time. Tribune reported around September 2026 that NANS challenged North Central universities over NELFUND refunds and illegal charges. These are NANS allegations, and the schools' responses have not been reported in the coverage available.
What the sources say
- Premium Times: Reported on 8 October 2026 that lawmakers said some beneficiary institutions failed to administer NELFUND funds properly, and warned of suspension from the scheme, recovery of funds and referral to law enforcement for deliberate non-compliance.
- Leadership: Reported on 8 October 2026 that the House Committee on Student Loans, Scholarships and Higher Education Financing warned about institutions withholding funds released for verified beneficiaries and delaying refunds.
- Technext24: Reported around 30 June 2026 that NELFUND condemned universities over tuition refund delays and fee increases.
- Channels Television: Reported around 29 June 2026 that NELFUND warned schools against withholding tuition refunds and arbitrary fee hikes.
- Vanguard: Reported in June 2026 that NELFUND was moving against universities over tuition refunds and fee hikes, and described the agency as set to crack down on unethical practices.
- Legit.ng: Reported that NANS listed institutions yet to refund students' NELFUND payments; the report refers to 41 institutions.
- Ripples Nigeria: Reported that NANS listed 39 institutions yet to refund students after NELFUND tuition payments.
Where the sources agree
- Premium Times and Leadership both report that a House of Representatives committee warned institutions over how they handle NELFUND money, on 8 October 2026.
- Outlets covering NELFUND's own statements in June 2026 (Technext24, Channels Television, ThisDay, Vanguard, the Guardian and Tribune) all describe the same concerns: delayed tuition refunds and fee increases by institutions.
- Reports from 2025 (the House probe and the call for duplicate-fee refunds) point to the same kind of problem, so it has been raised repeatedly over more than a year.
Where they differ
How many institutions NANS says have not refunded students
- Legit.ng: Its report refers to 41 institutions yet to refund students' NELFUND payments, although its web address mentions 43.
- Ripples Nigeria: Reports that NANS listed 39 institutions yet to refund students after NELFUND tuition payments.
Which consequence the House committee emphasised
- Premium Times: Stresses the possible sanctions: suspension from the scheme, recovery of funds and referral to law enforcement.
- Leadership: Stresses that some institutions withhold funds released for verified beneficiaries and delay refunds.
What the authorities say
The House of Representatives Committee on Student Loans, Scholarships and Higher Education Financing, as reported by Premium Times and Leadership on 8 October 2026, warned institutions against non-compliance in managing and administering the student loan scheme. It said some institutions withhold funds released for verified beneficiaries, and that deliberate non-compliance could bring suspension from the scheme, recovery of funds and referral to law enforcement. NELFUND, as reported by Channels Television, ThisDay, Technext24 and others around late June 2026, had earlier condemned refund delays and fee increases by tertiary institutions. No court ruling or action by the National Universities Commission (NUC) has been reported in the coverage available.
What this means for you
Students who paid fees themselves and were later covered by a NELFUND loan may be owed a refund. If a school delays it, the student may be out of pocket for weeks or months.
Students whose loan money was released but who are asked to pay again, or to pay extra charges, may be facing a duplicate or unauthorised charge. Vanguard reported in July 2025 that NELFUND told institutions to refund duplicate fees.
A school suspended from the scheme could leave its students without access to new loans, although no institution has been reported as suspended. Students at institutions named by NANS may want to check their own accounts closely.
Fake notices circulate around NELFUND. Vanguard reported in July 2026 that NELFUND debunked a fake upkeep suspension notice, and Channels Television reported in September 2026 that it denied a claim of a life jail term over loan repayment.
What you can do
- Keep every receipt, bank alert and loan confirmation showing what you paid and what NELFUND paid to your school.
- If you paid fees yourself and your tuition was later paid by NELFUND, write to your bursar to ask for a refund. Keep a copy of the letter and note the date.
- If the school does not respond, raise the complaint with your students' union and with NELFUND through its official channels, rather than through social media posts or unverified numbers.
- Be wary of any message claiming your loan or allowance is suspended, or that you face penalties. Check it against NELFUND's official channels before you act or pay anyone.
ConsumersNG is a consumer research platform, not a financial adviser, lawyer or medical professional. These steps are general information to help you ask the right questions. Before making decisions about your money, health or legal rights, check with the relevant regulator or a qualified professional. Read our full Disclaimer.
Still unclear
- Which lawmaker spoke for the committee, and was the warning general or aimed at named institutions?
- What evidence or figures did the committee present, and are the claims of withheld funds proven or still allegations?
- Who has the power to suspend an institution or recover funds: the committee, NELFUND or another agency?
- Which institutions are involved, how much money is at stake and how should a student complain?
- How have the schools responded, and which of the NANS lists (39 or 41 institutions) is accurate?
ConsumersNG's view
Reports keep pointing to the same worry: some schools may be holding on to student loan money from the Nigerian Education Loan Fund (NELFUND), or delaying refunds. The House committee's warning on 8 October 2026 follows NELFUND's own complaint in late June and complaints from students. But so far the committee has named no schools, given no figures and shown no proof.
So treat the warning as a reason to check your own records, not as proof that your school has done wrong. The lists from the National Association of Nigerian Students (NANS) are claims, and different outlets give different numbers. The schools have not responded in the reports so far, and no court or regulator has found any of them guilty.
Your best protection is paperwork: keep receipts, loan confirmations and written requests. Be careful with unofficial messages about suspensions or penalties, because NELFUND has had to deny fake notices before. We will update this brief when the committee's full statement, and any reply from schools or NELFUND, comes out.
This is ConsumersNG's opinion based on the sources above. It is not financial, legal or investment advice. Please speak to a qualified adviser before making decisions.
Sources & references
- SupportsPremium Times Reps warn participating institutions against manipulating NELFUND loans
- SupportsLeadership Student Loans: Reps Warn Beneficiary Institutions Against Withholding NELFUND Funds, Delaying Refunds
- ContextTechnext NELFUND condemns universities over tuition refund delays and fee increases
- ContextChannels TV NELFUND warns schools against withholding tuition refunds, arbitrary fee hikes
- ContextThisDay NELFUND decries alleged unethical practices by tertiary institutions
- ContextVanguard NELFUND cracks down on varsities over tuition refunds, fee hikes
- ContextVanguard NELFUND set to crack down on varsities' unethical practices
- ContextThe Guardian Nigeria NELFUND condemns tuition hikes, refund delays by tertiary institutions
- ContextTribune Student loan: NELFUND targets schools withholding tuition refunds
- ContextLegit.ng NANS Lists 41 Institutions Yet To Refund Students' NELFUND Payments
- ContextRipples Nigeria NANS lists 39 institutions yet to refund students after NELFUND tuition payments
- ContextTribune NANS tackles North Central varsities over NELFUND refunds, illegal charges
- ContextVanguard Refund students for duplicate fees, NELFUND tells institutions
- ContextNairametrics Reps probe NELFUND over alleged fraud in student loan disbursement in Nigeria
- ContextBusinessDay NELFUND unveils student loan guidelines, warns tertiary institutions against fraud, overpayment breaches
- ContextVanguard NELFUND debunks fake upkeep suspension notice
- ContextChannels TV NELFUND debunks claim of life jail term for students who fail to repay loans
Researched with AI assistance and reviewed by a ConsumersNG editor. How we research.