The Federal Government of Nigeria has uncovered unethical practices involving certain higher institutions and banks colluding to shortchange students whose loans under the Federal Government Student Loan Fund have already been approved and disbursed.
This revelation follows an investigation conducted by the National Orientation Agency (NOA), raising serious concerns about the administration of the loan scheme.
In a post on its X handle, Director General of the NOA, Mallam Lanre Issa-Onilu, reported findings from its Community Orientation and Mobilization Officers (COMO), which suggest that schools and banks have engaged in actions that deprive students of their rightful loan benefits.
However, the specific institutions and banks involved were not disclosed.
“Recent investigations into the disbursement of the Federal Government Student Loan Fund have uncovered several unethical practices by some institutions of higher learning,” the NOA stated.
The Director General of the Agency shared these findings after a meeting with Managing Director of NELFUND, Mr. Akintunde Sawyerr, the body responsible for overseeing the loan scheme.
According to the investigation, certain universities have deliberately withheld critical financial information regarding disbursed student loans for their personal gain.
In some cases, institutions have received the loan amounts directly into their accounts, but failed to inform the affected students, leaving them unaware of payments made in their names.
Additionally, some universities require students to pay tuition fees despite receiving funds from NELFUND on their behalf.
“The NOA’s feedback shows how specific institutions have, in connivance with some banks, deliberately delayed payments to successful student applicants for personal financial benefit,” said Issa-Onilu.
“Such actions are both unethical and a breach of the principles upon which NELFUND was founded. Legal action will be pursued against institutions engaging in such deceptive practices.”
To address the issue, NOA has directed its state directorates to gather additional feedback from students across the country to facilitate appropriate action against erring schools and banks.
Mallam Issa-Onilu expressed hope that stricter oversight and accountability measures would restore trust in the student loan program and ensure that funds reach those they are intended to help.
The student loan scheme, initially enacted in June 2023 under President Bola Tinubu, was designed to provide interest-free loans to assist Nigerian students.