Reps Moves To Investigate Alleged Violation Of Student Loan Act

The lower chamber of the National Assembly, the House of Representatives, has approved a resolution to look into alleged breaches of the Student Loan Act.

Naijaonpoint reports that this follows a motion of urgent significance regarding purported unethical practices in the distribution of student loans by Aliyu Abdullahi.

While presenting the motion in the House, Mustapha voiced significant concern over alleged misconduct that jeopardises the integrity and transparency of the student loan program established under the Student Loans (Access to Higher Education) Act, 2024.

The initiative, which provides interest-free loans to qualified Nigerian students, has reportedly seen over 500,000 registered applicants and has disbursed more than ₦54 billion across the country.

However, Mustapha pointed out some alarming revelations that raise serious questions about the program’s management.

The lawmaker mentioned instances of graduates still receiving loans, as well as loan payments made to institutions even after students had settled their fees, among other issues.

He alleged that there is collusion between certain tertiary institutions and financial entities to delay, misdirect, or hide student loan disbursements.

He noted that there have been cases where institutions received funds on behalf of students but did not inform the beneficiaries or update their financial records, which directly contravenes the Nigerian Education Loan Fund (NELFUND) guidelines.

Additionally, the lawmaker referred to findings from the Federal Ministry of Education, which revealed unauthorised deductions from student loan payments by specific universities.

He characterised such actions as a severe breach of public trust and a violation of the Student Loans Act, urging immediate legislative examination.

He also disclosed that the program suffers from inadequate verification systems, citing instances of inflated tuition fees posted on the NELFUND portal, disbursements made to students who had already graduated, and payments sent to institutions even after students had independently covered their tuition.

“These infractions not only undermine the objectives of the student loan scheme but may have denied thousands of Nigerian students their rightful access to education,” Mustapha stated. “If left unchecked, these practices risk eroding public confidence in the integrity of the loan programme,” he stated.

Following extensive deliberation, the House urged NELFUND to strengthen its verification and monitoring mechanisms through the deployment of advanced IT solutions. Lawmakers also called for sanctions against any tertiary institution found guilty of violating the Student Loans Act or its operational guidelines.

The House has mandated its relevant committees to carry out a thorough investigation and asked institutions to refund fees paid by students.