NOA RAISES ALARM OVER NELFUND ..... Says Tertiary Institutions Shortchanging Students with Student Loans

"Some institutions have received student loan disbursements directly into their accounts yet neglect to inform the affected students or record the payments in their financial records, leading to unnecessary confusion." Akintunde Sawyerr, MD NELFUND 

Abuja- Nigeria: Several unethical practices in the disbursement of the Federal Government Student Loan Fund by some institutions of higher learning, have been uncovered, following recent investigations carried out.

Mallam Lanre Issa-Onilu, the Director General of the NOA, announced the findings after meeting with NELFUND Managing Director, Mr. Akintunde Sawyerr, over the weekend. Initial reports indicated that certain university officials have been withholding vital information regarding loan disbursements, prompting immediate action from NELFUND.

This is according to the latest report by the Community Orientation and Mobilisation Officers (COMO), of the National Orientation Agency (NOA) which revealed that schools and banks are conspiring to short-change the students. 

The NOA's feedback shows how specific institutions have connived with some banks, thereby deliberately delayed payments to successful student applicants for personal financial benefit. Some universities fail to acknowledge the NELFUND’s disbursements to the students. Mr. Akintunde Sawyerr confirmed that some institutions are failing to inform students about loan disbursements made in their name while still requiring them to pay tuition fees.

Mr. Sawyerr, while addressing the DG NOA stated that, “Recent findings by NELFUND have shown that some institutions have received student loan disbursements directly into their accounts yet neglect to inform the affected students or record the payments in their financial records, leading to unnecessary confusion. 

"Withholding critical financial information from students is not only unethical but also a breach of the principles on which NELFUND was founded. We are prepared to take legal action against any institution engaged in such deceptive practices.” He said.

Responding, the NOA Director General, Mallam Issa-Onilu has therefore issued a strong warning to these institutions and collaborating banks to cease such activities, stating that, "NOA has directed its state directorates to provide further feedback from students across the country to ensure that the Federal Government takes appropriate actions against erring schools and banks." He stated.