By Safiyat Muhammed
Abuja, Nigeria – The National Orientation Agency (NOA) has uncovered a network of fraudulent practices involving some universities and financial institutions allegedly blocking the disbursement of student loans under the Federal Government’s Nigeria Education Loan Fund (NELFUND).
In a statement issued on Sunday by the agency’s Deputy Director of Communications and Media, Paul Odenyi, the NOA revealed that investigations carried out by its Community Orientation and Mobilisation Officers (COMO) exposed how certain tertiary institutions, in collaboration with banks, have deliberately withheld critical information to prevent students from accessing their entitled loans.
The Director General of NOA, Mallam Lanre Issa-Onilu, disclosed the findings after a high-level meeting with the Managing Director of NELFUND, Mr. Akintunde Sawyerr, over the weekend.
According to the NOA, some university officials have been accused of receiving loan disbursements directly into their institutions’ accounts without notifying the beneficiaries. In some cases, students were still asked to pay tuition fees even after NELFUND had released the funds intended for that purpose.
“Recent findings by NELFUND have shown that some institutions have received student loan disbursements directly into their accounts yet neglect to inform the affected students or record the payments in their financial records, leading to unnecessary confusion,” Mr. Sawyerr stated.
He described the actions as unethical and warned that legal action would be taken against any institutions or financial institutions found guilty of such deceptive practices.
“These deceptive practices not only violate the rights of students but also undermine the credibility of the government’s efforts to make education more accessible,” he added.
The NOA emphasized that such actions amount to a gross abuse of public trust and a violation of students’ rights, particularly as some institutions continued demanding full tuition even after receiving the loan payments meant to cover those fees.
To strengthen accountability, Issa-Onilu directed all NOA state offices to intensify feedback collection from students across the country, which will assist in identifying the defaulting institutions and facilitating government sanctions.
The agency reaffirmed its dedication to ensuring transparency, accountability, and the effective implementation of educational interventions designed to ease the financial burden on Nigerian students.
“The investigation remains ongoing, and further actions are expected in the coming weeks,” the statement concluded.
