The Nigerian Education Loan Fund (NELFUND) has raised alarms over alleged unethical practices by some tertiary institutions and banks, accusing them of frustrating the disbursement of government-backed student loans.
According to NELFUND’s Chief Executive Officer, Akintunde Sawyerr, some universities have received funds meant for students but failed to inform them or reflect the payments in their financial records, thereby causing confusion and hardship.
“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,” Sawyerr stated.
“Withholding critical financial information from students is not only unethical but also a breach of the principles on which NELFUND was founded.”
The revelations came during a weekend meeting between Sawyerr and the Director General of the National Orientation Agency (NOA), Mallam Lanre Issa-Onilu. The NOA, through its Community Orientation and Mobilisation Officers, had investigated complaints of institutions and banks withholding funds disbursed on behalf of students.
In response, the NOA has directed its state offices to gather further student feedback and help identify institutions involved in these alleged malpractices.
A spokesperson for NOA, Paul Odenyi, emphasized the government’s readiness to act decisively: “We are prepared to take legal action against any institution engaged in such deceptive practices.”
The agencies have issued strong warnings to both academic institutions and financial institutions to cease any such misconduct immediately or face legal consequences.