Lawmakers Propose Inquiry into Suspected Breach of Student Loan Laws
The House of Representatives has instigated a comprehensive probe into suspected mismanagement of the student loan scheme, according to reports. Aliyu Mustapha Abdullahi, a lawmaker, raised concerns about alleged unethical practices in the distribution of student loans that threaten the integrity and transparency of the program, established under the Student Loans (Access to Higher Education) Act, 2024.
The student loan initiative, offering interest-free loans to qualified Nigerian students, mobilized over half a million applicants and disbursed an impressive ₦54 billion nationwide. However, Mustapha highlighted troubling discoveries that question the management of the program.
Mustapha revealed instances of students still receiving loans and loan payments made to institutions even after students had settled their fees. He accused certain tertiary institutions and financial entities of colluding to delay, misdirect, or hide student loan disbursements.
Instances of institutions receiving funds on behalf of students but failing to inform them or update their records breach Nigerian Education Loan Fund (NELFUND) guidelines, Mustapha claimed. Additionally, he cited unauthorized deductions from student loan payments by specific universities and inflated tuition fees on the *NELFUND* portal.
Mustapha alleged that these actions constitute a severe breach of public trust and a violation of the Student Loans Act. He urged immediate legislative examination, stating that such practices can deny numerous Nigerian students their rightful access to education and erode public confidence in the loan program.
Following extensive deliberation, the House called on NELFUND to strengthen its verification and monitoring mechanisms by deploying advanced IT solutions. Lawmakers also demanded sanctions against any tertiary institution found guilty of violating the Student Loans Act or its operational guidelines. The House also mandated relevant committees to carry out a thorough investigation and required institutions to refund fees paid by students.
Meanwhile, the ongoing allegations and the subsequent investigation have significant implications for NELFUND. If left unchecked, these practices could permanently damage the credibility of the program and jeopardize the objectives of expanding access to higher education for Nigerian students. The House of Representatives' investigation is a crucial step toward preserving the integrity of Nigeria's student loan program.
- The investigation by the House of Representatives, focused on suspected mismanagement within the student loan scheme, involves processes related to policy-and-legislation and general-news, given the program was established under the Student Loans (Access to Higher Education) Act, 2024.
- Aliyu Mustapha Abdullahi, a lawmaker, has raised concerns regarding the management of the student loan program in Nigeria, citing unethical practices by certain tertiary institutions and financial entities that threaten the integrity and transparency of the program.
- Mustapha's allegations include instances of students still receiving loans and loan payments made to institutions even after students had settled their fees, as well as unauthorized deductions from student loan payments by specific universities and inflated tuition fees on the NELFUND portal.
- In response to these allegations, the House of Representatives has called for strengthened verification and monitoring mechanisms by NELFUND, demanded sanctions against any tertiary institution found guilty of violating the Student Loans Act or its operational guidelines, and mandated relevant committees to carry out a thorough investigation while requiring institutions to refund fees paid by students.
