The Nigerian Education Loan Fund (NELFUND) has provided an official explanation for the delay in the disbursement of student loan funds to Ladoke Akintola University of Technology (LAUTECH), Ogbomoso, following rising concerns among students and their parents over the stalled release of funds.
According to NELFUND, the delay is not a result of policy reversal or withdrawal of funds but stems from incomplete institutional processes required before payments can be effected. The agency explained that every beneficiary institution must complete a detailed validation and reconciliation procedure to ensure accuracy of student data, eligibility status, and institutional records prior to fund release. In the case of LAUTECH, these processes were not concluded within the timeline of the most recent disbursement cycle, making it impossible for the Fund to proceed with payment at that time.
NELFUND disclosed that it is currently engaging with the management of LAUTECH, led by Vice-Chancellor Professor Rasak Olatunde Rom Kalilu, to resolve the outstanding documentation and complete the required reconciliation. The Fund stressed that these engagements are ongoing and aimed at ensuring that all verified beneficiaries are accurately captured before funds are released to the institution.
The agency further revealed that a total of 12,733 LAUTECH students have already been verified as beneficiaries under the Federal Government’s Education Loan Scheme. It emphasised that these students should not be penalised due to the temporary delay, urging the university to allow affected beneficiaries to continue academic activities, including sitting for examinations, while the disbursement process is finalised.
In a reassurance to students and parents, NELFUND stated that no eligible beneficiary would be disadvantaged as a result of the delay. The Fund urged all stakeholders to remain calm, noting that the delay is purely administrative and will be resolved once institutional requirements are fully met.
The clarification comes amid the broader implementation of the student loan programme across tertiary institutions nationwide. NELFUND highlighted that disbursements have been successfully completed in other universities where reconciliation processes were concluded on schedule. Among them is the University of Benin, which recently received additional tranches of student loan funds covering thousands of verified beneficiaries, amounting to hundreds of millions of naira.
The agency also used the opportunity to address circulating claims regarding loan repayment directives, stressing that no authorised repayment demand has been issued to students at this stage. NELFUND reaffirmed that only official communications from the Fund should be relied upon and warned against misinformation capable of causing unnecessary panic among students.
NELFUND reiterated its commitment to transparency, accountability, and collaboration with tertiary institutions as it continues the nationwide rollout of the student loan scheme. The Fund maintained that while administrative challenges may arise in the course of implementation, safeguards have been put in place to protect students and ensure proper management of public funds.
As reconciliation efforts continue between LAUTECH and NELFUND, students and parents are expected to receive further updates once the outstanding processes are concluded and disbursement timelines are confirmed.
