The National Orientation Agency (NOA) has raised a serious alarm over what it describes as a growing conspiracy between some universities and banks to short-change Nigerian students who are beneficiaries of the Federal Government’s student loan scheme.
According to the NOA, recent investigations have shown that certain schools and financial institutions are either withholding or mismanaging loan disbursements made to students under the Nigeria Education Loan Fund (NELFUND). These findings came after a review of reports submitted by the agency’s Community Orientation and Mobilisation Officers (COMOs) from across the country.
In a statement released on Sunday by the agency’s Deputy Director of Communications and Media, Paul Odenyi, the NOA stated that the Director General of the agency, Mallam Lanre Issa-Onilu, had met with the Managing Director of NELFUND, Mr. Akintunde Sawyerr, to discuss the disturbing developments.
The NOA disclosed that some university officials are deliberately withholding key information about loan payments from their students. In some cases, the schools reportedly received the student loan funds directly from NELFUND but failed to inform the students, nor did they reflect the payments in their internal financial records. Instead, these schools continued to demand full tuition payments from students who were supposed to have been covered by the loan scheme.
“This is a betrayal of trust,” said Mr. Sawyerr. “Recent findings by NELFUND have shown that some institutions have received student loan disbursements directly into their accounts, yet they fail to inform the affected students or update their tuition records. This leaves the students confused and financially burdened.”
He added that such actions are not only unethical but also violate the core objectives of NELFUND, which was established to ease the financial burden of education for Nigerian students. Mr. Sawyerr warned that legal action would be taken against any institution or bank found guilty of manipulating student loan disbursements.
The NOA, in its role as a government agency responsible for mobilising and educating Nigerians about government policies and programmes, has vowed to monitor the situation closely. Mallam Issa-Onilu condemned the fraudulent practices and described them as a major obstacle to the success of the student loan initiative.
He said, “This is unacceptable. Any institution or bank found to be complicit in cheating students out of the loans meant for their education will face consequences. These funds are meant to help students concentrate on their studies without the pressure of school fees hanging over their heads.”
To ensure that the fraud is addressed, the NOA has directed its state offices nationwide to collect more feedback from students and their families regarding their experiences with the student loan scheme. The agency aims to use the feedback to inform federal authorities and ensure disciplinary actions are taken where necessary.
The student loan initiative, launched by the Federal Government through NELFUND, was designed to help indigent students in public tertiary institutions access funds to pay for their education. The loans are intended to cover tuition, books, and other educational expenses, with repayment scheduled to begin only after graduation and employment.
The scheme was widely praised as a major step toward improving access to higher education in Nigeria, especially for students from low-income backgrounds. However, the recent revelations have cast a shadow over its implementation, raising questions about transparency and oversight.
Many students had expressed optimism when the programme began, believing it would ease the burden on their parents and allow them to focus on their studies. But reports of delayed payments, lack of communication from school authorities, and unrecorded disbursements are now dampening that hope.
Some students who spoke anonymously to journalists said they had applied for the loan and received approval notifications, but their schools denied receiving any payments. In other cases, students were told by their institutions to still pay fees “pending confirmation,” despite NELFUND records showing that payments had been made.
“I was so relieved when I got the message that my loan was approved,” one student from a federal university in the North-West said. “But weeks later, my school still asked me to pay my fees. When I asked about the loan, they said they were not aware of any payment. I don’t know what to believe anymore.”
Another student in the South-East recounted a similar experience. “They told me to pay and that the loan hasn’t been confirmed, but when I checked, the money had already been sent to the school’s account,” he said. “This is frustrating.”
Both the NOA and NELFUND are now urging students and their parents to come forward with any information regarding irregularities in the loan process. The agencies are also warning school administrators and financial institutions to desist from tampering with the loan funds or concealing disbursements.
“Students are the future of this country, and we must protect them from exploitation,” said Issa-Onilu. “We will not stand by and watch while some institutions try to undermine a programme that is meant to empower the youth.”
He reiterated the importance of transparency in all dealings related to public funds and added that NOA’s
