The House of Representatives has mandated four of its standing committees to investigate alleged unethical practices surrounding the disbursement of student loans under the Nigerian Education Loan Fund (NELFUND).
The resolution followed the adoption of a motion moved by a lawmaker representing Ikara/Kubau Federal Constituency, Aliyu Abdullahi Mustapha, during plenary presided over by Speaker Tajudeen Abbas on Wednesday.
Mustapha expressed concern over alleged violations of the Student Loans (Access to Higher Education) Act, 2024, by some tertiary institutions and finance institutions.
The lawmaker, while presenting the motion, noted that the 2024 Act was enacted to ensure transparent, timely, and equitable access to interest-free loans for all Nigerian students pursuing higher education.
He wondered that despite commendable progress including the disbursement of over N54 billion to more than half a million applicants, emerging reports of malpractices threaten the credibility of the scheme.
The lawmaker said: “Aware that a recent report by the National Orientation Agency (NOA) alleging Collusion between certain tertiary institutions and financial institutions to delay, divert, or conceal disbursement of student loans under the Nigerian Education Loan Fund (NELFUND);
“Also aware that the National Orientation Agency and NELFUND have uncovered that some institutions received loan disbursements but failed to notify beneficiaries or update financial records, which Is a violation of the NELFUND Guidelines, raising concerns over transparency and accountability;
“Further aware that the Federal Ministry of Education has initiated a probe into alleged unauthorized deductions from student loans by some universities, describing the act as a gross violation of public trust and a breach of the Student Loans Act, 2024;
“Concerned about reports of mismanagement and lack of proper verification, including instances where tertiary institutions upload inflated school fees on the NELFUND portal, cases of final-year students receiving loans after graduation and disbarments made to tertiary institutions even after students have fully paid their tuition fees to avoid delays;
Mustapha expressed worry that violations of NELFUND guidelines by some institutions may have denied thousands of students their rightful access to loans and undermined the credibility of the loan scheme.
According to him, without robust oversight and enforcement, such violations may continue unchecked, undermining public confidence in the student loan programme;
Adopting the motion, the House resolved to urge NELFUND to implement advanced IT solutions to strengthen verification and streamline loan disbursement processes.
Lawmakers also called on the agency to sanction any institution found guilty of violating the provisions of the Act and the NELFUND guidelines.
The House further mandated all tertiary institutions to refund students who had already paid their tuition fees prior to receiving NELFUND disbursements.
The House directed the House Committees on Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; and University Education to investigate the allegations and report back within four weeks
