NOA And NELFUND Uncover Alleged Mismanagement Of Student Loans By Universities And Banks

In a troubling revelation, the National Orientation Agency (NOA) and the Nigerian Education Loan Fund (NELFUND) have uncovered that some universities and financial institutions may be withholding student loan funds that have already been approved and disbursed.

According to Lanre Issa-Onilu, Director General of NOA, the discovery came after numerous complaints from students who were barred from writing exams due to alleged non-payment—despite the fact that NELFUND had already released the funds. In many cases, students were forced to pay out of pocket to meet academic obligations, only to later learn that the institutions had received the funds all along.

Issa-Onilu further revealed that some universities are compounding the problem by imposing questionable ‘processing fees’ on loan recipients, thereby placing an extra financial burden on already struggling students.

“These actions are not only unethical but potentially criminal. We have escalated our findings to the appropriate anti-corruption agencies for investigation and possible prosecution,” he said.

The NOA chief emphasized the importance of transparency and accountability in the management of the student loan scheme, which was designed to alleviate financial barriers and make higher education more accessible.

NELFUND is expected to collaborate with relevant authorities to ensure that all responsible parties are held accountable and that affected students receive justice.

As the investigation unfolds, students and parents nationwide are calling for swift reforms and stricter oversight to protect the integrity of the student loan system.