The Federal Government has expressed strong disapproval of certain tertiary institutions allegedly withholding student loan funds credited to their accounts, as part of the Nigerian Education Loan Fund (NELFUND) scheme.
According to the National Orientation Agency (NOA), some heads of tertiary institutions have reportedly conspired with financial institutions to deprive students of the loans meant to ease their educational burden.
In a statement released on Sunday, the NOA disclosed findings gathered by its Community Orientation and Mobilisation Officers (COMO), indicating that some schools failed to provide students with essential information about the availability and status of their loan applications.
Director General of NOA, Lanre Issa-Onilu, revealed these findings following a strategic meeting with the Managing Director of NELFUND, Akintunde Sawyerr, held on Saturday.
“Preliminary reports revealed that officials within some universities have been deliberately concealing key information about loan disbursements, prompting immediate intervention by NELFUND,” Issa-Onilu said.
“The NOA’s feedback highlights how certain institutions, in collusion with banks, have intentionally delayed the release of funds to students who successfully applied for the loans – allegedly for personal financial gain,” he added.
He further noted that some universities have gone as far as ignoring the receipt of NELFUND disbursements, failing to acknowledge or reflect the funds in their communication with students.
Speaking on the issue, NELFUND Managing Director Akintunde Sawyerr confirmed that several institutions had received loan funds directly into their accounts but failed to inform the respective students. In some cases, these institutions reportedly continued to demand payment of tuition fees, despite having received the necessary funds on behalf of the students.
“Recent investigations by NELFUND reveal that a number of schools have received disbursements intended for students, but instead of informing them, the institutions neither updated financial records nor issued acknowledgments, thereby creating unnecessary confusion for the beneficiaries,” Sawyerr stated.
He condemned the act, describing the withholding of financial details from students as both unethical and contrary to the founding principles of NELFUND.
“Such misconduct undermines the integrity of the loan initiative. We are prepared to pursue legal action against any institution found engaging in these dishonest practices,” he warned.
To address the situation, Issa-Onilu has directed NOA’s state directorates to intensify engagement with students nationwide and collect more firsthand reports, ensuring that the government can take appropriate action against schools and banks that flout the loan disbursement protocols.
