Loan scam: Students petition NELFUND, EFCC over alleged diversion of funds by Nigerian varsities

By David Usman, Abuja 

A group on the aegis of ‘Concerned Students relying on NELFUND loans’ at the weekend petitioned the Economic and financial crimes commission, EFCC, independent corrupt practices and other related offences commission, ICPC, Nigerian police among other agencies to investigate the alleged diversion of funds by Nigerian varsities.

The group made this known in an open letter to the Nigerian education loan fund, NELFUND, and signed by one Tony John from the Federal University, Wukari, Taraba State and forwarded to The Nations News on Saturday.

The statement reads in part: “Mismanagement of Student Loan Funds by Schools…Is NELFUND part of this Scam? Is scam and corruption now a norm in our higher institutions that nobody is talking about it?

“We write to bring to your attention a pressing issue regarding the mismanagement of student loan funds by some schools. 

“Several institutions have been withholding significant amounts of money from students after receiving loan disbursements into their school accounts.

Cases of Concern:

“Usmanu Danfodiyo University (UDUS): 124,000 was paid, but students received only 72,000. With over 5,000 students, this amounts to millions being withheld.

“Federal University Wukari (FUW): 90,000 to 164,000 was paid, but the school deducted over 40,000. With over 1,000 students, this totals over 40 million.

“University of Maiduguri (UNIMAID): Management is withholding funds, and many students haven’t received payments despite the school receiving the money.

” LAUTECH: The school refunds 20,000 intermittently, claiming incomplete payment from Nelfund. And, Many other schools are doing it too. Just research it and you will be amazed. 

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Allegations and Concerns:

“These cases suggest mismanagement and potential collusion. We urge Nelfund and every criminal organization to investigate and provide transparency on its involvement.

Request:

“We request Nelfund to Investigate these allegations and provide explanations. Ensure students receive full loan disbursements.Take corrective action against schools found guilty of mismanagement.

Transparency and Accountability:

“We expect Nelfund to demonstrate commitment to transparency and accountability in managing student loan funds” the students stressed.