Recent investigations by the National Orientation Agency (NOA) have unveiled disturbing irregularities in the disbursement of the Federal Government’s Student Loan Fund, implicating several universities and banks in unethical practices. These revelations have sparked widespread concern over transparency and accountability within the student loan scheme, which was designed to alleviate financial burdens for Nigerian students.
According to findings presented by the NOA’s Community Orientation and Mobilisation Officers (COMO), some tertiary institutions, in collaboration with banks, have been deliberately withholding or delaying student loan payments for personal financial gain. The Director General of NOA, Mallam Lanre Issa-Onilu, disclosed these alarming details following a strategic meeting with the Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, over the weekend.
Reports indicate that certain university officials have failed to inform students about loan disbursements made on their behalf. In some cases, institutions received funds directly into their accounts but neglected to notify beneficiaries or record the payments in their financial records. This has led to unnecessary confusion, with students still being required to pay tuition fees out-of-pocket despite their loans being approved and disbursed.
Mr. Sawyerr confirmed these findings, describing the withholding of critical financial information from students as both unethical and a breach of NELFUND’s foundational principles. He stated, “Recent findings by NELFUND have shown that some institutions have received student loan disbursements directly into their accounts yet neglect to inform the affected students or record the payments in their financial records, leading to unnecessary confusion.” He further emphasized that NELFUND would not hesitate to take legal action against any institution found culpable.
The NOA has issued a strong warning to implicated institutions and collaborating banks, demanding an immediate cessation of such practices. To ensure accountability, the agency has directed its state directorates to gather feedback from students nationwide and assist the Federal Government in identifying and penalizing erring schools and banks.
This fraudulent activity undermines the credibility of the student loan scheme, which was enacted under President Bola Ahmed Tinubu’s Renewed Hope Agenda to expand access to higher education. Stakeholders in the education sector have commended NOA’s intervention and called for swift action to restore trust in the initiative. Advocacy groups are also urging for increased transparency measures, such as dashboards for tracking loan disbursements and complaint channels for beneficiaries.
The NOA reiterated its commitment to protecting students’ rights and ensuring that they benefit fully from this government intervention. As investigations continue, both NOA and NELFUND have vowed to uphold transparency and fairness in implementing this vital scheme for Nigerian students.
