The National Orientation Agency (NOA) has raised serious concerns over alleged collusion between some universities and banks aimed at frustrating the timely disbursement of student loans. According to Lanre Issa-Onilu, Director-General of NOA, early investigations suggest that certain tertiary institutions have been deliberately withholding information and loan payments from qualified students. This revelation followed a recent meeting with Akintunde Sawyerr, head of the National Student Loan Fund (NELFund), where both parties acknowledged troubling reports from students and community agents.
Evidence suggests that some universities are not notifying students when loan funds have been received, with suspicions that these institutions are working alongside banks to profit from the delays. In some instances, NELFund has confirmed that loan money was sent to schools, but not properly recorded or disbursed to the students. Sawyerr emphasized that such actions are not only unethical but directly violate the rules governing the student loan program. He warned that legal actions could be taken against any institution found guilty of these practices.
Issa-Onilu has since directed NOA offices across the country to intensify efforts in gathering more information from affected students. The goal is to support federal enforcement and ensure accountability from both the universities and banks involved. This issue has become particularly urgent as many students face looming exam deadlines and upcoming school terms without receiving the financial support they were promised.
The student loan initiative, launched by President Bola Tinubu in June 2023, was designed to offer interest-free loans to help students access higher education. Although the program officially began accepting applications in May 2024, rollout delays and administrative hurdles have continued to frustrate students. Beyond delays, inconsistencies in disbursed loan amounts and lack of transparency have sparked wider concerns about the sustainability and fairness of the scheme. With mounting pressure, students and advocacy groups are now calling for stronger oversight and faster reforms.
Source: Business day