The National Orientation Agency (NOA) has alerted anti-corruption agencies about reports of some universities collaborating with banks to disrupt the new student loan scheme. This comes after accusations from The Nigerian Education Loan Fund (NELFund), which raised concerns that certain institutions are withholding critical information from students regarding their loan disbursements.
Akintunde Sawyerr, managing director of NELFund, revealed that some institutions failed to inform students when tuition fees had been paid directly by the loan fund. These schools continued to demand payments from students, creating confusion. Sawyerr condemned these practices as “unethical” and a violation of NELFund’s rules. He warned that legal action would follow if any institution continued such deceptive behavior.
“We urge all institutions to work transparently with NELFund to ensure the success of the loan scheme,” Sawyerr said, emphasizing the need for ethical behavior.
Anti-Corruption Agencies Take Action
Paul Odenyi, NOA’s Deputy Director of Communications, confirmed that investigations into these practices had begun. He raised concerns about the transparency and accountability of the loan scheme, calling it a serious issue. Lanre Issa-Onilu, the DG of NOA, explained that some schools were charging processing fees for loans they did not facilitate, further complicating the situation. He highlighted that many students were unaware their tuition fees had already been covered until after they had made additional payments.
Issa-Onilu noted that the situation is especially troubling as it undermines the government’s efforts to help students. He added that anti-corruption agencies have been put on alert, and schools are now under close scrutiny.
Student Loan Scheme Faces Implementation Challenges
President Bola Tinubu first introduced the student loan policy in June 2023, intending to provide interest-free loans to students. However, the implementation faced several delays. After multiple deferrals, the scheme was officially relaunched in April 2024, and the loan portal opened in May for federal institutions.
While the scheme aimed to ease students’ financial burdens, it has encountered significant hurdles. Many students have reported delays in receiving their loans, even after approval. In some cases, discrepancies between the amounts disbursed and the fees owed have caused confusion about repayment expectations. Students facing exam deadlines or starting new academic sessions without receiving their loans are particularly affected.
These issues have raised further concerns about the effectiveness of the scheme, as students struggle to access the funds meant to support their education.
