The Federal Government has accused some tertiary institutions of colluding with banks in unethical practices surrounding the disbursement of student loan funds under the National Student Loan Fund (NELFund) scheme.
The Director-General of the National Orientation Agency (NOA), Mr. Lanre Issa-Onilu, disclosed this after a meeting with the Managing Director of NELFund, Mr. Akintunde Sawyerr, in Abuja.
In a statement on Sunday, Issa-Onilu said early findings indicate that officials of some institutions are withholding crucial information regarding the release of loan funds to successful applicants.
He said the institutions, in collaboration with certain banks, have deliberately delayed the payment process, frustrating students’ access to the funds.
“Some universities are failing to acknowledge the disbursements made by NELFund and are not informing the students, thereby creating unnecessary confusion and hindering transparency,” he said.
Also speaking, Sawyerr confirmed that NELFund had uncovered several cases where institutions received student loan disbursements directly into their accounts but failed to notify the beneficiaries or record the payments in their financial documents.
“Such actions are a clear violation of the principles upon which NELFund was established. We are prepared to take legal action against any institution or official found culpable,” Sawyerr said.
Issa-Onilu warned the implicated institutions and collaborating financial institutions to desist from such acts, stressing that the government would not tolerate any conduct that undermines the integrity of the student loan scheme.
He reaffirmed the government’s commitment to ensuring that all eligible students benefit from the initiative without obstruction.
