By Paul Odenyi, Deputy Director, Communications and Media
A fresh controversy is brewing in Nigeria’s education sector as recent investigations have revealed unethical practices by some tertiary institutions in the disbursement of the Federal Government’s Student Loan Fund. Findings from the National Orientation Agency (NOA), through its Community Orientation and Mobilisation Officers (COMO), indicate that certain universities and banks are allegedly colluding to deny students full access to the funds.
The Director General of NOA, Mallam Lanre Issa-Onilu, disclosed this development after a weekend meeting with the Managing Director of the Nigeria Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr. According to reports, some university officials have been withholding vital information about loan disbursements, triggering swift intervention from NELFUND.
The NOA revealed that some institutions, in collaboration with banks, have intentionally delayed the release of approved loan funds to eligible students, often for personal financial gains. Furthermore, it was discovered that some universities have received loan payments directly from NELFUND but have neither informed the students nor updated their financial records accordingly. This malpractice has led to a situation where students—unaware that their tuition has been paid—are still being compelled to make out-of-pocket payments.
Mr. Sawyerr confirmed the findings, noting, “Recent investigations by NELFUND show that some institutions have received student loan disbursements into their accounts but failed to inform the beneficiaries or reflect the payments in their internal systems. This is a gross violation of transparency and trust. NELFUND will not hesitate to pursue legal actions against any institution found guilty of such deceptive acts.”
In response to the revelations, Mallam Issa-Onilu has issued a stern warning to institutions and banks engaged in these activities to desist immediately. The NOA has also mobilised its state offices to collect more feedback from students nationwide to aid the Federal Government in taking decisive action against the culprits.
The unfolding situation has raised fresh concerns over accountability in the management of public educational funds and underscores the need for increased oversight and transparency in student loan administration.
