A recent investigation into Nigeria’s federal student loan program has exposed troubling allegations of misconduct involving tertiary institutions and banks. Evidence suggests these entities are intentionally withholding funds meant for students, causing widespread financial distress. The issue surfaced during a weekend meeting between the National Orientation Agency’s Director General, Mallam Issa-Onilu, and Akintunde Sawyerr, Managing Director of the Nigerian Education Loan Fund.
In a statement released Sunday by agency spokesperson Paul Odenyi, Community Orientation and Mobilization Officers detailed unethical practices uncovered in the loan disbursement process. Findings indicate that some institutions have received loan payments directly but failed to inform students or update their financial records accordingly.
As a result, students remain unaware of disbursed funds while facing demands for tuition payments. Sawyerr condemned the practice, stating that such actions violate the core principles of the loan program, and warned that legal action awaits any institution found guilty. The National Orientation Agency has directed its state offices to collect further student feedback to support government efforts in addressing the issue. A stern warning has been issued to all involved institutions and banks to cease these practices immediately.
