The House of Representatives has resolved to investigate alleged unethical practices in the student loans disbursements
The House of Representatives has resolved to investigate alleged cases of diversion, non-disclosure, and mismanagement of student loans disbursements, as well as widespread non-compliance with the provisions of the Student Loans (Access to Higher Education) Act, 2024.
The investigation will be jointly conducted by the House Committees on Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; and University Education. The joint committee is expected to report back to the House within four weeks.
This resolution followed the adoption of a motion sponsored by Rep. Aliyu Abdullahi Mustapha (PDP Kaduna), who raised concerns about growing irregularities in the administration of the Nigerian Education Loan Fund (NELFUND).
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In his motion, Rep. Mustapha highlighted that the Student Loans Act was enacted to guarantee equitable, transparent, and timely access to interest-free loans for all Nigerian students pursuing higher education.
He noted that over 500,000 students have applied under the scheme, with more than N54 billion disbursed to beneficiaries across the country.
Despite this progress, he expressed concern over a recent report by the National Orientation Agency (NOA), which alleged collusion between certain tertiary institutions and financial institutions to delay, divert, or conceal student loan disbursements.
“The National Orientation Agency and NELFUND have uncovered that some institutions received loan disbursements but failed to notify beneficiaries or update financial records, which is a violation of the NELFUND Guidelines, raising concerns over transparency and accountability,” Mustapha stated.
He further disclosed that the Federal Ministry of Education has launched a separate investigation into unauthorized deductions from student loan disbursements by some universities, describing such actions as a gross violation of public trust and a breach of the Student Loans Act, 2024.
Lawmakers were also alarmed by reports of inflated tuition fees uploaded to the NELFUND portal, disbursements made to final-year students after graduation, and instances where institutions received loans on behalf of students who had already paid their fees—leading to further delays and confusion.
The House, in its resolutions, called on NELFUND to implement advanced IT solutions to enhance verification processes and streamline operations within the system. It also urged the Fund to report violations to the appropriate authorities and sanction any institution found to be in breach of the Act or guidelines.
Additionally, all tertiary institutions were mandated to immediately refund students who had paid tuition before receiving their NELFUND disbursements.
Lawmakers expressed deep concern that continued violations of the guidelines may deny thousands of students access to the financial support they need and erode public confidence in the programme.
“Without robust oversight and enforcement, such violations may persist unchecked, undermining the credibility and objectives of the student loan scheme,” Rep. Mustapha warned.
