The Federal Government’s Student Loan Fund has uncovered a series of unethical practices by some tertiary institutions in Nigeria, raising concerns over the integrity of the student loan disbursement process.
This was revealed in a report by Community Orientation and Mobilisation Officers (COMO) of the National Orientation Agency (NOA), some schools, in collaboration with certain banks, have been conspiring to shortchange students by deliberately delaying or mismanaging loan disbursements.
Mallam Lanre Issa-Onilu, Director General of the NOA, disclosed the findings following a meeting with the Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, over the weekend. Preliminary investigations revealed that some university officials have been withholding crucial information from students regarding their approved loans, prompting swift intervention by NELFUND.
Evidence from the NOA indicates that some institutions, in collusion with banks, have intentionally delayed the release of funds to eligible students for personal financial gain. In certain cases, universities have received the loan disbursements but failed to acknowledge or record them, continuing to demand tuition payments from students who should already be covered.
Mr. Sawyerr confirmed the troubling developments, stating:
“Recent findings by NELFUND reveal that some institutions have received student loan payments directly into their accounts but have failed to notify the students or reflect the payments in their financial records. This practice is not only unethical but represents a serious violation of the principles upon which NELFUND was established. We are fully prepared to pursue legal action against any institution found guilty of such deceptive conduct.”
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In response, Mallam Issa-Onilu issued a stern warning to the implicated institutions and their banking partners, demanding an immediate halt to the fraudulent practices.
The NOA has also directed its state directorates to intensify monitoring and gather additional feedback from students nationwide. This will enable the Federal Government to take decisive action against erring schools and financial institutions, ensuring transparency and accountability in the student loan process.
