The National Orientation Agency (NOA) has raised serious concerns about the alleged exploitation of students by some tertiary institutions and banks in the disbursement of the Federal Government’s Student Loan Fund.
Following a recent meeting with the Managing Director of the Nigeria Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, NOA’s Director General, Mallam Lanre Issa-Onilu, revealed that investigations uncovered unethical practices that are short-changing students.
Sawyerr confirmed that some schools failed to notify students about disbursed loans, while still demanding tuition payments from them.
Issa-Onilu elaborated:
“Reports from our Community Orientation and Mobilisation Officers (COMO) show that certain institutions, in collaboration with banks, have been deliberately withholding or delaying student loan payments. This is a gross abuse of trust and a disservice to students.”
He added that in several cases, institutions received loan disbursements directly into their accounts without informing the beneficiaries or reflecting the payments in school financial records.
“This deliberate lack of transparency is not only unethical, but it undermines the very principles upon which NELFUND was established,” Issa-Onilu stressed. “Legal action will be taken against any institution found guilty of such deceptive practices.”
The NOA has instructed its state offices to gather further reports from affected students nationwide. These findings will guide the Federal Government in taking appropriate action against the culpable institutions and financial entities.
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