The House of Representatives has resolved to investigate the alleged diversion, non-disclosure, and mismanagement of student loan disbursements, as well as non-compliance with the Student Loans Act, 2024.
The House mandated its committees on Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; University Education to investigate the matter and report back to the House within four weeks.
The Green Chamber also mandated all tertiary institutions to immediately refund students who paid their tuition fees before the Nigerian Education Loan Fund (NELFUND) loan disbursement.
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This is sequel to a motion sponsored by Aliyu Abdullahi, member representing Ikara/Kubau constituency during plenary on Wednesday.
The Student Loans (Access to Higher Education) Act, 2024 was enacted to ensure transparent, timely, and equitable access to interest-free loans for all Nigerian students pursuing higher education. The Government says over N54 billion has been disbursed to over half a million applicants.
The House recalled a recent report by the National Orientation Agency (NOA) alleging collusion between certain tertiary institutions and financial institutions to delay, divert, or conceal disbursement of student loans under NELFUND.
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The House expressed concerns about reports of mismanagement and lack of proper verification, including instances where tertiary institutions upload inflated school fees on the NELFUND portal, cases of final-year students receiving loans after graduation and disbarment made to tertiary institutions even after students have fully paid their tuition fees to avoid delays.
Lawmakers warned that without robust oversight and enforcement, such violations may continue unchecked, undermining public confidence in the student loan programme
The House therefore urged NELFUND to implement advanced IT solutions to enhance verification and streamline processes within the system. The Lower chamber also urged NELFUND to report to relevant authorities and sanction any institution found in violation of the Act or Guidelines.
