Reps Move To Probe Alleged Unethical Practices In Student Loan Disbursement
•By Admin
ABUJA – The House of Representatives has resolved to investigate growing allegations of unethical practices surrounding the disbursement of student loans under the Nigerian Education Loan Fund (NELFUND).
The resolution followed the adoption of a motion on urgent national importance moved on Tuesday by Hon. Aliyu Abdullahi Mustapha, member representing Ikara/Kubau Federal Constituency of Kaduna State.
Presenting the motion on the floor of the House, Hon. Mustapha expressed deep concern over alleged misconduct threatening the integrity and transparency of the student loan scheme established under the Student Loans (Access to Higher Education) Act, 2024.
The programme, which offers interest-free loans to eligible Nigerian students, has reportedly recorded over 500,000 registered applicants and disbursed more than N54 billion nationwide. However, Mustapha cited disturbing revelations that cast serious doubt on the administration of the scheme.
Quoting a report by the National Orientation Agency (NOA), the lawmaker alleged collusion between some tertiary institutions and financial institutions to delay, divert, or conceal student loan disbursements.
He said instances had emerged where institutions received funds on behalf of students but failed to inform the beneficiaries or update their financial records, a direct violation of NELFUND guidelines.
The lawmaker also referenced findings by the Federal Ministry of Education, which uncovered unauthorized deductions from student loan payments by certain universities. Describing such actions as a gross breach of public trust and a violation of the Student Loans Act, Mustapha called for urgent legislative scrutiny.
He further revealed that the programme was plagued by weak verification systems, citing examples of inflated school fees uploaded to the NELFUND portal, disbursements made to students who had already graduated, and payments sent to institutions even after students had independently paid 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.”
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.
Furthermore, institutions that received loan disbursements for students who had already paid their fees were directed to refund the affected students without delay.
To ensure a thorough investigation, the House mandated its Committees on Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; and University Education to jointly probe the alleged mismanagement, diversion of funds, and non-compliance with the provisions of the Act.
The committees are expected to submit their findings within four (4) weeks.
•INDEPENDENTNG.