The Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu, has revealed that anti-corruption agencies have been alerted to investigate certain tertiary institutions suspected of colluding with banks to undermine Nigerias newly launched student loan scheme. This development comes amid growing concerns over transparency and accountability in the implementation of the initiative. The Nigerian Education Loan Fund (NELFund) recently raised alarm over the conduct of some higher education institutions, accusing them of withholding critical information from student beneficiaries. According to Akintunde Sawyerr, Managing Director of NELFund, several institutions have failed to inform students that their tuition fees had already been paid directly to the schools by the loan fund. Instead, these schools allegedly continued demanding payment from the students, leading to confusion and financial strain. Describing the practice as unethical and in direct violation of the loan scheme's principles, Sawyerr warned that legal action would be taken against any institution found to be engaging in what he called deceptive practices. He stressed the need for institutions to operate transparently and work collaboratively with NELFund to ensure the success of the scheme. In a follow-up statement issued by Paul Odenyi, NOAs Deputy Director of Communications and Media, the agency confirmed that its own investigations supported NELFunds findings. Odenyi said the irregularities were brought to light through reports filed by Community Orientation and Mobilisation Officers (COMO) operating across the country. Speaking in an interview on Arise Television, Issa-Onilu expressed deep concern over the allegations, stating that the implicated institutions were now under the radar of Nigerias anti-graft agencies. He revealed that NOA had received reports of some schools charging students processing fees to access the loans, despite playing no role in the disbursement process. He also highlighted the growing frustration among students who only learned that their fees had been covered by the loan after already making out-of-pocket payments. 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, Issa-Onilu said. It is so sad that any institution would be involved in this kind of thing. It is like sabotaging the citizens; lets not even talk about the government. It is about sabotaging ourselves. To address the issue, NELFund has now made it possible for students to independently track their loan application and disbursement status, eliminating the need for institutional mediation. The student loan scheme, initially enacted by President Bola Tinubu in June 2023, was designed to offer interest-free loans to students in public tertiary institutions. Although its implementation faced several delays, the scheme was reenacted in April 2024, with the loan application portal opening in May for a pilot phase focused on federal institutions. Despite its promise, the rollout has not been without challenges. Many students report delayed disbursements, even after loan approvals, leaving them financially stranded as exam periods and academic deadlines approach. Others have raised concerns over discrepancies between the disbursed amounts and actual tuition fees, complicating the calculation of repayment obligations. With investigations ongoing and anti-corruption agencies now involved, the integrity of the student loan program faces a critical test as stakeholders work to safeguard the interests of Nigerian students and restore public confidence in the scheme.Source: Linda Ikeji Blog 😎
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