An investigation has uncovered that some Nigerian tertiary institutions, in collaboration with banks, are allegedly withholding student loan funds disbursed by the Federal Government, causing confusion and hardship for affected students.
The findings were revealed during a meeting over the weekend between the Director General of the National Orientation Agency (NOA), Mallam Issa-Onilu, and the Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr.
According to a statement signed by NOA spokesperson Paul Odenyi, reports gathered by Community Orientation and Mobilisation Officers of the agency showed that certain institutions received student loan disbursements directly but failed to inform the students or reflect the payments in their financial records.
Mr. Sawyerr expressed concern that such unethical practices undermine the purpose of the loan scheme, which is aimed at easing the financial burden on students. He warned that legal action would be taken against any school or bank found guilty of diverting or concealing loan disbursements.
He stated, “Withholding critical financial information from students is not only unethical but also a breach of the principles on which NELFUND was founded.”
The NOA has since directed its state offices to gather additional feedback from students to support further government action against the implicated institutions and banks.
A warning has also been issued to all parties involved to immediately desist from such actions or face sanctions.
