The House of Representatives has resolved to investigate alleged unethical practices in the disbursement of student loans under the Nigerian Education Loan Fund (NELFUND), following reports of irregularities in the program's implementation.
The decision came after the adoption of a motion moved by Aliyu Mustapha during Wednesday's plenary session. The House has mandated its Committees on Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; and University Education to conduct the investigation.
According to Mustapha, the Student Loans (Access to Higher Education) Act, 2024 was established to ensure transparent, timely, and equitable access to interest-free loans for Nigerian students pursuing higher education. While the program has made significant progress with over half a million applicants and disbursements exceeding N54 billion nationwide, serious concerns have emerged regarding its implementation.
Alleged Malpractices
The National Orientation Agency (NOA) recently reported alleged collusion between certain tertiary institutions and financial institutions to delay, divert, or conceal disbursement of student loans. The investigation revealed that some institutions received loan disbursements but failed to notify beneficiaries or update financial records, violating NELFUND guidelines.
Other reported irregularities include:
- Tertiary institutions uploading inflated school fees on the NELFUND portal
- Final-year students receiving loans after graduation
- Disbursements made to institutions even after students had fully paid their tuition fees
The Ministry of Education has already initiated a probe into unauthorized deductions from student loans by some universities, describing such actions as a gross violation of public trust and a breach of the Student Loans Act, 2024.
House Recommendations
The House has urged NELFUND to implement advanced IT solutions to enhance verification and streamline processes within the system. It also called on the agency to report violations to relevant authorities and sanction any institution found in breach of the Act or its guidelines.
Additionally, the House mandated all tertiary institutions to immediately refund students who paid their tuition fees before their NELFUND loan disbursement.
The investigating committees are expected to report back to the House within four weeks with their findings and recommendations.
