Reps nvestigate Alleged mismanagement of NELFUND
In a significant development to unravel uphold transparency, the House of Representatives has called for a comprehensive investigation into alleged unethical practices related to the disbursement of student loans under the Nigerian Education Loan Fund (NELFUND).
This move comes amid increasing concerns over transparency, mismanagement, and violations of the Student Loans (Access to Higher Education) Act, 2024.
The motion was brought forward by Hon. Aliyu Abdullahi Mustapha during a plenary session held in Abuja, where he highlighted troubling reports from the National Orientation Agency (NOA) and the Federal Ministry of Education.
These reports suggest potential collusion between some tertiary institutions and financial agencies to delay or misdirect student loans aimed at providing equitable access to higher education.
“The Student Loans Act, 2024 was enacted to ensure timely and transparent access to interest-free loans for all Nigerian students pursuing higher education,” Mustapha stated.
He continued, “While we have seen significant progress—with over half a million applicants and N54 billion disbursed—recent findings reveal serious misconduct that threatens the integrity of this essential program.”
According to the NOA report, some universities allegedly received loan disbursements but failed to inform the intended student beneficiaries or update their financial records, which contravenes NELFUND guidelines.
Moreover, there are claims that some institutions inflated tuition fees on the NELFUND portal or required tuition payments from students before loan disbursements, resulting in confusion and potential duplicate payments.
“Even more concerning are reports that final-year students received loans only after graduating, and universities accepted payments for tuition despite students having already paid on their own,” Mustapha added.
In light of these serious allegations, the Federal Ministry of Education has initiated an investigation into what it termed “unauthorized deductions” from student loans by certain universities, describing these actions as a “gross violation of public trust” and a breach of the Student Loans Act.
“This is a betrayal of the students we vowed to support,” emphasized Mustapha. “These actions not only deny rightful access to education funding but also erode public confidence in a program designed to empower Nigeria’s youth.”
The House of Representatives has urged NELFUND to implement advanced IT solutions aimed at improving verification processes and streamlining operations. They also directed NELFUND to report any violations of the Act and its guidelines to the appropriate authorities for necessary sanctions.
All tertiary institutions have been mandated to refund students who paid their tuition fees prior to the disbursement of their loans. Additionally, four House Committees—Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; and University Education—have been tasked with conducting a thorough investigation into the allegations, with findings expected within four weeks.
Mustapha underscored the urgency of the investigation, warning that the failure to enforce existing laws could lead to further abuses. “We must protect the future of Nigerian students. If these practices continue unchecked, they could irreparably damage the credibility of a system meant to ensure fair access to education,” he concluded.
The investigation is set to begin immediately, with a report anticipated before the end of next month.
Source: Vanguard newspaper
