BREAKING: NOA, NELFUND Uncover Alleged Fraud in Student Loan Disbursements by Nigerian Universities
Investigations by the National Orientation Agency (NOA) and the Nigerian Education Loan Fund (NELFUND) have revealed alleged unethical practices in the disbursement of the federal government’s student loan fund by several tertiary institutions across the country.
According to the findings released over the weekend, some universities and financial institutions have allegedly conspired to withhold or delay loan disbursements meant for students, raising serious concerns over transparency and accountability in the new student loan scheme.
Deputy Director of Communications and Media, NOA, Paul Odenyi, in a statement, further reiterated the agency’s commitment to ensuring that the objectives of the student loan scheme are not derailed. “This is about safeguarding the future of education in Nigeria,” he said.
The statement stressed the Director General of NOA, Mallam Lanre Issa-Onilu, as having disclosed the development following a strategic meeting with the Managing Director of NELFUND, Mr. Akintunde Sawyerr.
The revelation, the release said, was based on reports gathered by Community Orientation and Mobilisation Officers (COMO) across the country.
“Our officers have been engaging with students and education stakeholders. We received credible reports indicating that some institutions, in collaboration with banks, are withholding vital information about the loan disbursements or failing to credit students even after funds have been released,” Issa-Onilu said.
The findings, he said, point to a disturbing pattern wherein institutions reportedly receive funds directly from NELFUND but fail to notify students or reflect the payments in their financial records. In some cases, students are still asked to pay tuition fees out-of-pocket, despite their loans being approved and disbursed on paper.
Confirming the malpractice, NELFUND Managing Director, Mr. Akintunde Sawyerr, stated that his agency is prepared to take legal action against any institution found culpable.
“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.
“Withholding critical financial information from students is not only unethical but also a breach of the principles on which NELFUND was founded.” Sawyerr said
The loan programme, designed to alleviate the financial burden on students and improve access to tertiary education, risks losing credibility if such practices are not promptly addressed.
In response, NOA has issued a nationwide directive to all state directorates to gather feedback from students and monitor the implementation of the loan scheme. The agency said it will ensure that appropriate disciplinary and legal measures are taken against schools and banks found to be in violation.
“The federal government’s student loan initiative is a lifeline for many Nigerian families. It must not be undermined by the selfish interests of a few actors within the system, we are committed to working with NELFUND and other relevant agencies to protect the rights of students.” said Issa-Onilu
Stakeholders in the education sector have commended the move and urged the government to take swift and decisive action. Student advocacy groups have also begun calling for transparency dashboards and complaint channels to ensure beneficiaries can track their loan status independently.
