The National Association of Ogun State Students (NAOSS) has called for an investigation into an alleged discrepancy in the disbursement of student loans under the Nigerian Education Loan Fund (NELFUND) at D.S. Adegbenro ICT Polytechnic, Ogun State.

The students’ body alleged that while NELFUND disbursed N355,000 per beneficiary, the institution’s tuition fees stood at about N236,000, leaving an outstanding balance of approximately N119,000 per student that had not been accounted for.

National President of NAOSS, Comrade Aare Oluwafemi Ajayi, in a statement on Tuesday, expressed concern over what he described as a possible attempt to deprive students of funds belonging to them.

He insisted that NELFUND was established to ease the financial burden on students and not to become a channel for institutional profiteering.

“Reports indicate that the sum of N355,000 was disbursed per student through NELFUND, whereas the actual school fees payable stand at approximately N236,000. This leaves a balance of N119,000 belonging to each affected student.

“The refusal or failure of the institution to refund this excess amount raises serious questions and creates a strong perception of fraudulent intent,” the statement read.

NAOSS consequently called on the Economic and Financial Crimes Commission (EFCC) to investigate the matter, while demanding transparency, accountability, and immediate refund of any excess funds due to affected students.

However, the Rector of D.S. Adegbenro ICT Polytechnic, Dr. Rauf Adegoke, dismissed allegations of fraud, explaining that the amount received from NELFUND covers more than tuition fees.

The controversy is coming amid increasing scrutiny of NELFUND disbursements across tertiary institutions as students seek greater clarity on how loan funds are allocated and utilised.

Speaking in response to the allegations, Adegoke said the loan package includes charges for Health Maintenance Organisation (HMO) services, insurance, security, and other welfare-related services which institutions are mandated by NELFUND to provide on behalf of beneficiaries.

“That fund is in two categories. The first is upkeep allowance paid directly to students approved for the loan scheme. The second covers tuition and other services such as hospital care, insurance, and a few other things that NELFUND expects the Polytechnic to provide on behalf of students,” he said.

According to the rector, the Polytechnic has fulfilled all its obligations by enrolling beneficiaries in health insurance schemes, providing HMO services, and issuing cards that enable students to access medical care at designated hospitals.

“For every beneficiary, we have done insurance and Health Maintenance Organisation services. We have given them cards so that they can access healthcare whenever they are sick. These are benefits that are supposed to be provided on their behalf, and we have done that,” he stated.

Adegoke further clarified that students who paid their tuition fees before receiving NELFUND approval had already been refunded the amounts they personally paid to the institution.

“Some students paid tuition before NELFUND approved their loans. What we did was refund whatever amount they paid from their personal funds. Some paid N160,000, others N180,000, depending on their programme and payment arrangements. All such payments have been returned to them,” he explained.

He maintained that all deductions and expenditures were in line with NELFUND guidelines and applied to all beneficiary institutions nationwide.

“Everything NELFUND directed us to do, we have done, including insurance, HMO, and security arrangements. We are not expected to hand over money meant for those services to students. These are services provided for their benefit,” he added.

The Rector also noted that some of those making allegations were not beneficiaries of the loan scheme, noting that the institution had records to verify its compliance with NELFUND directives. (Nigerian Tribune)