The National Orientation Agency (NOA) and the Nigerian Education Loan Fund (NELFUND) have accused some tertiary institutions and banks of conspiring to short-change students by withholding disbursed loan funds meant to support their education.
This allegation follows a report by the NOA’s Community Orientation and Mobilisation Officers (COMO), which uncovered unethical practices in the handling of the Federal Government’s student loan disbursements.
NOA Director General, Mallam Lanre Issa-Onilu, disclosed the findings after a meeting with NELFUND Managing Director, Mr. Akintunde Sawyerr, over the weekend.
According to the NOA, certain institutions of higher learning have been colluding with commercial banks to delay or withhold disbursements from reaching students, despite receiving the funds.
The agency said some universities have failed to acknowledge the receipt of loans and have not informed students that payments were made on their behalf.
“The NOA’s feedback shows how specific institutions have, in connivance with some banks, deliberately delayed payments to successful student applicants for personal financial benefit,” Issa-Onilu said.
Mr. Sawyerr confirmed the allegations, stating that some universities received the student loan funds directly into their accounts but failed to reflect the payments in their financial records or notify the affected students.
“Recent findings by NELFUND have shown that some institutions have received student loan disbursements directly into their accounts yet neglect to inform the affected students or record the payments in their financial records, leading to unnecessary confusion,” Sawyerr said.
“Withholding critical financial information from students is not only unethical but also a breach of the principles on which NELFUND was founded. We are prepared to take legal action against any institution engaged in such deceptive practices,” he added.
In response, the NOA has issued a stern warning to the implicated institutions and banks, urging them to desist from such practices. The agency has also directed its state offices to gather further reports from students to assist the Federal Government in taking appropriate action against offenders.
