Director-general (DG) of the National Orientation Agency (NOA), Lanre Issa-Onilu, has accused some tertiary institutions of colluding with some banks to sabotage the student loan scheme of the federal government. Issa-Onilu said that the matter has been reported to the Economic and Financial Crime Commission, EFCC to scrutinize the activities of such financial institutions and the schools involved in such racketeering.
Nigerian Education Loan Fund, NELFUND had earlier raised alarm accusing some higher education institutions of withholding information
about student loan disbursements from its beneficiaries.
According to the Managing Director, MD of NELFund, Akintunde Sawyerr said his agency had discovered some institutions who were deliberately withholding information from its students when loan payments had been made directly to the institutions for their fees.
Subsequently these institutions were still demanding fee payments from the affected students, causing confusion.
The NELFUND MD described the practice as “unethical” and a “direct violation” of Nefud’s principles and warned that legal action would be taken against any institution found to be engaging in such “deceptive practices”.
He warned such institutions to be transparent in their dealings and work with the fund to ensure the loan scheme’s success.
In a follow up to NELFund action, the NOA through it Deputy Director of Communications and Media, Paul Odenyi, said its investigation confirmed the development.
He said the action raised “serious concerns over transparency and accountability in the new student loan scheme”.
Accordingly, NOA said the report was based on findings by Community Orientation and Mobilisation Officers (COMO) across the country.
However, in an interview on Arise Television, Issa-Onilu disclosed that the affected higher institutions are under the radar of anti graft agencies.“We also heard of some schools that charge some fees, processing or so-called fees, for the students to access the funds.
Something that you played no role in,” he said.
“We see a lot of students complaining that it is only after they have made payment that they discover that NELFUND has paid for the tuition. And schools did not inform them.
“We had to relate to NELFUND, and we found out it was not news to NELFUND, and NELFUND was actually dealing with the issues already.
“As I speak, the anti-corruption agencies have been put on notice by NELFUND. Now, students can track from application to disbursement by themselves; schools cannot do that anymore.
“It is so sad that any institution would be involved in this kind of thing. It is like sabotaging the citizens; let’s not even talk about the government. It is about sabotaging ourselves”, he stated.
Recall that President Bola Tinubu enacted the student loan policy for the first time in June 2023 targeted to provide an interest-free loan to students.
The scheme took-off in October 2023, but actual implementation was repeatedly deferred until a re-enactment in April 2024.
Subsequently, NELFund opened the loan application portal in May 2024, at which time a pilot phase to serve federal tertiary institutions began.
Reports indicate that some students have experienced delays in the disbursement of funds, even after being approved.
This has led to situations where students are nearing exam deadlines or new academic sessions without receiving their loans.
There have also been inconsistencies reported in the amounts disbursed compared to actual school fees, creating confusion about repayment obligations.