NOA Exposes Fraud In Nigerian Student Loan Scheme: Universities, Banks Accused Of Withholding Funds

The National Orientation Agency (NOA) has uncovered unethical practices by some Nigerian tertiary institutions and banks that are depriving students of access to the Federal Government Student Loan Fund. According to the agency, these institutions and banks have engaged in fraudulent activities, including withholding critical information about student loan disbursements and delaying payments to approved applicants for dubious financial gain.

The Nigeria Education Loan Fund (NELFUND) has also discovered that some universities fail to acknowledge disbursements made to students and continue to demand full tuition payments despite receiving loan funds intended to cover those fees. NELFUND's Managing Director, Akintunde Sawyerr, warned that the organization is prepared to take legal action against institutions engaging in such practices.

Sawyerr emphasized that withholding critical financial information from students is unethical and a breach of NELFUND's principles. The NOA's Director General, Mallam Lanre Issa-Onilu, has directed all state directorates to intensify feedback collection from students nationwide to aid in identifying and penalizing erring parties.

The NOA remains committed to transparency, accountability, and ensuring students benefit fully from government education financing initiatives. The investigation is ongoing, and further actions are expected in the coming weeks.