…Mandates tertiary institutions to refund paid fees before loan disbursements

By Gift ChapiOdekina, Abuja

The House of Representatives has called for a thorough investigation into alleged unethical practices in the disbursement of student loans under the Nigerian Education Loan Fund (NELFUND), amid growing concerns over transparency, mismanagement, and violations of the Student Loans (Access to Higher Education) Act, 2024.

The motion, raised by Hon. Aliyu Abdullahi Mustapha on the floor of the House during plenary in Abuja, drew attention to alarming reports from the National Orientation Agency (NOA) and the Federal Ministry of Education, which suggest collusion between some tertiary institutions and financial institutions to delay or divert student loans intended to provide equitable and interest-free access to higher education.

Moving, Mustapha noted that “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 said: “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 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.

“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,” Mustapha added. “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 of Representatives urged NELFUND to implement advanced IT solutions to improve verification processes and streamline operations.

The House also directed NELFUND to report violations of the Act and Guidelines to relevant authorities and impose sanctions where necessary.

Mandated all tertiary institutions to refund students who had paid their tuition fees before their loan disbursements.

It further charged four House Committees—Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; and University Education—to conduct a comprehensive investigation into the allegations and report their findings within four weeks.

Mustapha emphasized the urgency of the probe, warning that failure to enforce existing laws could enable further abuse.

“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 expected to begin immediately, with a report anticipated before the end of next month.