The National Orientation Agency (NOA) has raised concerns over alleged collusion between some tertiary institutions and banks to exploit students benefiting from the Federal Government’s student loan scheme.
According to the Director-General of the NOA, Lanre Issa-Onilu, early findings gathered through the agency’s community workers suggest that certain university officials are deliberately concealing vital information regarding disbursed student loans, in collaboration with some banks.
Issa-Onilu made this revelation following a strategic meeting with the Managing Director of the Nigerian Education Loan Fund (NELFund), Akintunde Sawyerr, as part of efforts to ensure the transparency and effectiveness of the student loan program.
In a statement released on Sunday, the NOA accused some institutions of deliberately delaying disbursements to eligible students in order to exploit the situation for financial gain. In some cases, universities allegedly failed to inform students when their loan funds had been received.
Sawyerr corroborated these claims, noting that NELFund had encountered multiple instances where loan payments were sent to schools but were neither disclosed to students nor properly documented.
“We’ve discovered that some institutions receive student loan disbursements but fail to notify the students involved, or record the transactions appropriately. This lack of transparency not only undermines the objectives of the loan program but also violates the guiding principles of NELFund,” Sawyerr said. “We will not hesitate to pursue legal action against any institution found guilty of these actions.”
Issa-Onilu issued a stern warning to the institutions and financial institutions allegedly involved, calling for an immediate end to the malpractice. He also directed NOA offices across all states to gather further reports from students, with a view to assisting the Federal Government in taking disciplinary measures against any offenders.
The student loan scheme, introduced by President Bola Ahmed Tinubu in June 2023, was designed to provide interest-free loans to eligible students in tertiary institutions. Although initially scheduled for rollout in October 2023, the program faced delays and only became operational in April 2024.
NELFund launched its online application portal in May 2024, starting with students in federal institutions. However, challenges have continued to plague the process — including delayed disbursements, mismatched loan amounts, and lack of clarity on repayment structures.
The agency reaffirmed its commitment to ensuring that the loan program fulfills its intended purpose of supporting students without burdening them with unnecessary hurdles or institutional interference.
