Reps Launch Investigation into Alleged Misconduct in Student Loan Disbursement

Reps Launch Investigation into Alleged Misconduct in Student Loan Disbursement

Abuja — The House of Representatives has ordered a comprehensive investigation into allegations of unethical practices surrounding the disbursement of student loans under the Nigerian Education Loan Fund (NELFUND), following concerns over lack of transparency, mismanagement and possible violations of the Student Loans (Access to Higher Education) Act, 2024.

The motion, presented by Hon. Aliyu Abdullahi Mustapha during plenary in Abuja, highlighted disturbing reports from the National Orientation Agency (NOA) and the Federal Ministry of Education. The reports point to alleged collusion between certain tertiary institutions and financial entities to either delay or misappropriate funds meant to give Nigerian students fair and interest-free access to higher education.

“The Student Loans Act, 2024, was enacted to ensure timely and transparent access to interest-free loans for all Nigerian students pursuing higher education.

“While significant progress has been made, with over half a million applicants and N54 billion disbursed, recent findings point to grave misconduct that undermines the integrity of the entire scheme.”

“A report from the NOA alleges that some tertiary institutions received loan disbursements but failed to notify student beneficiaries or update their financial records, an act that contravened NELFUND guidelines.

‘’In other cases, universities reportedly uploaded inflated tuition fees on the NELFUND portal or collected tuition fees from students before the disbursement of loans, resulting in duplicate payments and confusion.

“Even more troubling are allegations that final-year students received loans after graduation, and that institutions received payments, despite students having already paid their tuition independently.”

“The federal ministry of education, in response to these revelations, has launched a probe into what it described as ‘unauthorized deductions’ from student loans by certain universities, calling the actions a ‘gross violation of public trust and a breach of the Student Loans Act.’

“This is a betrayal of the students we vowed to support. Such actions not only deny rightful access to education funding but also erode public confidence in a programme designed to empower Nigerian youths.”

The House has directed NELFUND to adopt more advanced IT verification systems and streamline its processes. It further instructed the Fund to report any violations to the appropriate authorities and enforce sanctions where necessary.

Additionally, all tertiary institutions that collected tuition before loan disbursement are mandated to refund affected students.

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A joint investigation has been assigned to four key House Committees — Student Loans; Scholarships and Higher Education Financing; Banking and Ancillary Institutions; Anti-Corruption; and University Education — with a deadline to report their findings within four weeks.

“We must protect the future of Nigerian students. If left unchecked, these practices could permanently damage the credibility of a system meant to create a level playing field in access to education,” Mustapha said.

The investigation is set to commence immediately, with expectations that a comprehensive report will be submitted before the end of next month.