Some universities in Nigeria are allegedly working with banks to deny students access to government-approved student loans. This shocking development was recently uncovered by the National Orientation Agency (NOA), following field reports from its Community Orientation and Mobilisation Officers (COMOs).
According to the Director General of the NOA, Mallam Lanre Issa-Onilu, these institutions are deliberately withholding information and payments meant for students. He made this statement after a meeting with Mr. Akintunde Sawyerr, the Managing Director of the Nigerian Education Loan Fund (NELFUND).
The loan program is supposed to help students pay their school fees and continue their education without stress. However, reports show that in many cases, the money doesn’t get to the students. Instead, some schools receive the funds and keep quiet about it.
How the Scam Works
In some universities, loan payments are sent directly to the school accounts by NELFUND. But the schools reportedly fail to notify the students. In other cases, they still demand tuition payments from students even after receiving money on their behalf.
Mr. Sawyerr described the situation as both unethical and illegal. “Some schools do not inform students that their loans have been paid. They also fail to update their financial records. This creates confusion and makes students think their applications were unsuccessful,” he explained.
He added that NELFUND will not tolerate this behavior. Legal steps may be taken against any school found guilty of such deception.
NOA Responds with Strong Warning
Reacting to the findings, Mallam Issa-Onilu issued a warning to all institutions and banks involved in this misconduct. He stated that the NOA has asked its state offices to collect more feedback directly from students. The goal is to help the Federal Government take firm action against any university or bank trying to cheat students.
“We cannot allow the purpose of the student loan program to be defeated by greedy individuals,” he said.
What’s Next?
With these revelations coming to light, the NOA and NELFUND are now working more closely to monitor loan disbursements. Students are also encouraged to speak out if they suspect their school has received money without informing them.
This issue has raised serious concerns about transparency and trust in the country’s higher education system. The government’s promise to support students through loans can only work if all institutions handle the process honestly.
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