Lawmakers to Investigate Student Loan Fraud Allegations

In addition to non-compliance with the Student Loans Act of 2024, the House of Representatives has decided to investigate claims of mismanagement, non-disclosure, and diversion of student loan disbursements. According to the government, more than half a million applicants have received over N54 billion.

The House directed its committees on university education, banking and other ancillary institutions, anti-corruption, and student loans, scholarships, and higher education financing to examine the issue and report back within four weeks. Additionally, the Green Chamber ordered all post-secondary educational institutions to promptly reimburse students who paid their tuition fees prior to the release of loans from the Nigerian Education Loan Fund (NELFUND). This follows a motion raised during a recent plenary session by Aliyu Abdullahi, the member representing the Ikara/Kubau constituency. 

To ensure fair, prompt, and transparent access to interest-free loans for all Nigerian students seeking higher education, the Student Loans (Access to Higher Education) Act, 2024 was enacted. According to the government, more than half a million applicants have received over N54 billion. 

The National Orientation Agency (NOA) recently reported that several educational institutions and financial organisations conspired to delay, reroute, or conceal the disbursement of student loans under NELFUND. 

The House took note of this information. 

Examples of mismanagement and inadequate verification reported to the House include instances where tertiary institutions uploaded inflated tuition fees on the NELFUND portal, cases of final-year students receiving loans after graduation, and the disbarment of students from institutions despite having paid their fees in full to avoid delays. 

Lawmakers warned that without strict oversight and enforcement, these infractions might go unpunished, undermining public trust in the student loan programme. As a result, the House recommended that NELFUND deploy cutting-edge IT solutions to enhance verification processes and streamline system operations. Furthermore, the Lower Chamber urged NELFUND to notify the relevant authorities and impose sanctions on any institution found in breach of the guidelines or the Act.