The House of Representatives has passed a resolution to investigate alleged violations and unethical practices in the disbursement of student loans under the Student Loans (Access to Higher Education) Act, 2024.
This followed a motion of urgent public importance moved by Rep. Aliyu Mustapha Abdullahi, who expressed concern over actions that threaten the integrity of the student loan scheme.
The programme, which offers interest-free loans to eligible Nigerian students, has recorded over 500,000 applicants and disbursed more than ₦54 billion. However, Mustapha cited troubling reports of mismanagement, including disbursements to students who have already graduated and payments made to institutions even after students had settled their fees independently.
He also alleged collusion between some tertiary institutions and financial institutions to delay or divert loan funds, in clear violation of the Nigerian Education Loan Fund (NELFUND) guidelines.
Citing findings by the Federal Ministry of Education, Mustapha noted cases of unauthorised deductions by universities and inflated fees uploaded to the NELFUND portal. He described these actions as a breach of public trust and a violation of the Student Loan Act.
“These infractions not only undermine the programme’s objectives but may have denied thousands of Nigerian students their rightful access to education,” he said, warning that such misconduct could erode public confidence in the scheme.
In response, the House called on NELFUND to strengthen its verification and monitoring systems using advanced technology. Lawmakers also demanded that institutions found guilty of violating the Act be sanctioned and instructed to refund any wrongly collected student payments.
The relevant House committees have been mandated to conduct a thorough investigation.
