The House of Representatives has launched a call for a full-scale investigation into suspected irregularities in the disbursement of student loans administered through the Nigerian Education Loan Fund.
This action follows increasing concerns regarding a lack of transparency, mismanagement, and potential breaches of the Student Loans (Access to Higher Education) Act, 2024.
During a recent plenary in Abuja, Hon. Aliyu Abdullahi Mustapha moved a motion highlighting disturbing findings reported by the National Orientation Agency and the Federal Ministry of Education.
According to the reports, some tertiary institutions and financial institutions may have colluded to manipulate the loan process, delaying or misdirecting funds meant to ensure interest-free access to higher education for eligible Nigerian students.
Mustapha reminded the House of the intent behind the 2024 Student Loans Act, stating, “The Student Loans Act, 2024 was enacted to ensure timely and transparent access to interest-free loans for all Nigerian students pursuing higher education.”
He further noted the scheme’s reach, with more than 500,000 applicants and N54 billion disbursed to date.
However, he raised alarms over new revelations suggesting widespread malpractice, “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.”
The NOA’s report alleges that some institutions received funds but failed to notify students or update their accounts accordingly, violating NELFUND’s operational guidelines.
In some instances, inflated tuition figures were reportedly uploaded to the NELFUND portal, while students were charged upfront fees, leading to cases of duplicated payments.
Adding to the controversy, there are claims that some final-year students were granted loans after graduation, and that institutions accepted disbursements despite students having independently settled their tuition.
The Federal Ministry of Education has since begun its own probe, describing these practices as “unauthorized deductions” and denouncing them as serious breaches of trust and legal violations.
“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 contravenes 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.”
“This is a betrayal of the students we vowed to support,” Mustapha declared. “Such actions not only deny rightful access to education funding but also erode public confidence in a programme designed to empower Nigeria’s youth.”
In response, the House called on NELFUND to adopt more sophisticated IT systems to verify student and institutional data, and streamline the entire loan process.
NELFUND was also directed to report any violations of its guidelines to appropriate authorities and enforce sanctions where warranted.
Additionally, the House ordered all affected tertiary institutions to refund students who had already paid tuition before their loans were disbursed.
To ensure thorough oversight, four House Committees, Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; and University Education, were tasked with conducting a joint investigation.
The committees are expected to submit their findings within four weeks.
Mustapha stressed the need for swift and decisive action, “We must protect the future of Nigerian students. If left unchecked, these practices could permanently damage the credibility of a system meant to level the playing field in access to education.”
The investigation is set to commence immediately, with the final report due before the end of next month.