The House of Representatives on Wednesday resolved to investigate the alleged diversion, non-disclosure, and mismanagement of student loan disbursements, as well as non-compliance with the Student Loans Act, 2024.
The House also asked the Nigeria Students Loan Fund (NELFUND) to take steps to report to relevant authorities and sanction any institution found to operate in violation of the Act establishing the fund and guidelines for its operations.
The House also asked the fund to implement advanced IT solutions to enhance verification of students and participating institutions and streamline processes within the system
Adopting a motion of urgent public importance sponsored by Aliyu Mustapha Abdullahi (PDP, Kaduna), the House directs all tertiary institutions to immediately make refund to students who paid their tuition fees before their NELFUND loan disbursement.
Leading the debate in the bill, Abdullahi recalled that the Student Loans (Access to Higher Education) Act, 2024 was enacted to ensure transparent, timely, and equitable access to interest-free loans for all Nigerian students pursuing higher education.
He said significant progress has been made in the programme so far, with over half a million applicants and the disbursement of over N54 billion to beneficiaries across the country.
According to him, a recent report by the National Orientation Agency (NOA) alleging Collusion between certain tertiary institutions and financial institutions to delay, divert, or conceal disbursement of student loans under the Nigerian Education Loan Fund (NELFUND).
He disclosed that the National Orientation Agency and NELFUND have uncovered that some institutions received loan disbursements but failed to notify beneficiaries or update financial records, which Is a violation of the NELFUND Guidelines, raising concerns over transparency and accountability.
In addition, he disclosed that the Federal Ministry of Education has initiated a probe into alleged unauthorized deductions from student loans by some universities, describing the act as a gross violation of public trust and a breach of the Student Loans Act, 2024.
He expressed concerned about reports of mismanagement and lack of proper verification, including instances where tertiary institutions upload inflated school fees on the NELFUND portal, cases of final-year students receiving loans after graduation and disbarments made to tertiary institutions even after students have fully paid their tuition fees to avoid delays.
He said the violations of NELFUND Guidelines by some institutions may have denied thousands of students their rightful access to loans and undermined the credibility of the loan scheme; Further worried that without robust oversight and enforcement, such violations may continue unchecked, undermining public confidence in the student loan programme.
(The Nation)
