The House of Representatives has passed a resolution to investigate alleged violations of the Student Loans (Access to Higher Education) Act, 2024, over claims of misconduct in the disbursement of student loans.
The resolution followed a motion of urgent public importance presented by Rep. Aliyu Abdullahi Mustapha on Thursday, who raised concerns about unethical practices that threaten the transparency and effectiveness of the student loan scheme.
The scheme, administered by the Nigerian Education Loan Fund (NELFUND), offers interest-free loans to eligible Nigerian students. It has so far recorded over 500,000 registered applicants and disbursed more than ₦54 billion across the country.
Mustapha, however, cited disturbing reports, including cases of graduates continuing to receive loans, and payments being made to institutions even after students had personally settled their fees.
He alleged that certain tertiary institutions and financial institutions were colluding to delay, divert, or conceal loan disbursements. According to him, some universities received payments on behalf of students but failed to notify beneficiaries or update their financial records, in direct violation of NELFUND’s operational guidelines.
The lawmaker also referenced findings by the Federal Ministry of Education, which revealed unauthorised deductions by some institutions from student loan payments. He described the actions as a “gross breach of public trust” and a violation of the law.
“These infractions not only undermine the objectives of the student loan scheme but may have denied thousands of Nigerian students their rightful access to education,” Mustapha said. “If left unchecked, these practices risk eroding public confidence in the integrity of the loan programme.”
He further pointed to weaknesses in NELFUND’s verification systems, including inflated tuition fees uploaded to the portal, and disbursements to ineligible or already-graduated students.
Following deliberations, the House resolved to mandate its relevant committees to launch a thorough investigation into the alleged irregularities. Lawmakers also called on NELFUND to adopt advanced IT solutions to enhance monitoring and verification processes.
The House directed that all institutions found to have received unauthorized payments be compelled to refund the fees and face appropriate sanctions in line with the Student Loan Act.
