The Nigerian House of Representatives has ordered a full-scale investigation into alleged unethical practices and violations surrounding the disbursement of student loans under the newly enacted Student Loans (Access to Higher Education) Act, 2024.
The resolution follows a motion of urgent national importance raised by Hon. Aliyu Abdullahi Mustapha, who sounded the alarm over widespread irregularities threatening the credibility and transparency of the interest-free student loan initiative.
Launched with the aim of expanding access to higher education for financially disadvantaged Nigerian students, the programme has already attracted over 500,000 applicants and seen disbursements exceeding ₦54 billion.
However, Mustapha cited disturbing lapses and possible collusion between some tertiary institutions and financial institutions in administering the scheme.
“There are reports of loans being disbursed to students who have already graduated and institutions receiving payments after students had already paid their fees,” Mustapha stated. “In some cases, schools allegedly failed to inform students that loans were paid on their behalf, violating NELFUND guidelines and undermining the scheme’s transparency.”
He went further to allege that some institutions engaged in unauthorised deductions from student loans and inflated tuition fees submitted to the Nigerian Education Loan Fund (NELFUND) platform, all while failing to update records or notify beneficiaries.
The lawmaker emphasized that these actions amount to a gross abuse of public trust, warning that if left unchecked, the integrity of the entire programme — designed to democratize access to education — could be permanently damaged.
“These violations not only deny deserving students access to education but also erode public confidence in a critical national programme,” Mustapha warned.
Following robust deliberation, the House unanimously passed the motion, mandating its Committees on Tertiary Education and Anti-Corruption to conduct a thorough investigation.
Among the resolutions: NELFUND was directed to overhaul its verification and monitoring systems by deploying advanced digital solutions. Sanctions were demanded against any institution found to have manipulated the loan process. Institutions that received student loan payments under false pretenses were ordered to refund affected students.
The House reaffirmed its commitment to safeguarding the future of Nigerian students and ensuring that public programmes operate with the highest standards of accountability and fairness.
