By Ayomide Otitoju
The Federal Government has accused certain tertiary institutions and financial institutions of deliberately undermining the National Student Loan Fund (NELFund) by withholding critical disbursement information and obstructing access to approved education loans.
The National Orientation Agency (NOA) disclosed the allegations on Sunday following a strategic meeting between NOA Director General, Lanre Issa-Onilu, and the Managing Director of NELFund, Akintunde Sawyerr.
According to the NOA, preliminary findings point to a coordinated effort by some universities in collaboration with partner banks to exploit the system for personal gain, thereby frustrating the scheme’s mission of providing equal access to educational funding.
“We’ve identified troubling cases where institutions received approved disbursements but failed to inform students or reflect the payments in their financial records,” said Sawyerr. “Such actions are unethical and contrary to the founding principles of NELFund. We will not hesitate to initiate legal proceedings against those involved.”
The agency further revealed that certain institutions are deliberately delaying disbursements, refusing to acknowledge receipt of funds, and keeping students uninformed—leaving approved payments idle in school accounts while students remain stranded.
In response, Issa-Onilu announced that NOA state offices across the country have been tasked with closely monitoring the situation and collecting direct feedback from affected students.
“The abuse of this initiative will not be tolerated,” Issa-Onilu stated. “We are expanding our oversight efforts and collaborating with NELFund to enforce transparency and accountability at every level of the disbursement process.”
The student loan program, which was originally signed into law by President Bola Tinubu in June 2023 and re-enacted in April 2024, was launched to provide interest-free loans to Nigerian students in federal institutions. The pilot phase began in May 2024, but implementation has been marred by complaints of delays, irregular fee structures, and poor communication, particularly during critical academic periods.
Despite the challenges, the government reaffirmed its commitment to the integrity of the scheme, warning that any institution or financial body found sabotaging the process will face stiff legal and regulatory consequences.
