Reps To Probe Alleged Violation Of Student Loan Act

The House of Representatives has passed a resolution to investigate alleged violations of the Student Loan Act.

This is sequel to a motion of urgent importance on alleged unethical practices in the disbursement of student loans by Aliyu Abdullahi.

Presenting the motion on the floor of the House, Mustapha expressed deep concern over alleged misconduct threatening the integrity and transparency of the student loan scheme established under the Student Loans (Access to Higher Education) Act, 2024.

The programme, which offers interest-free loans to eligible Nigerian students, has reportedly recorded over 500,000 registered applicants and disbursed more than ₦54 billion nationwide. However, Mustapha cited disturbing revelations that cast serious doubt on the administration of the scheme.

The lawmaker cited cases of students who have graduated still receiving loans, as well as loan payments to institutions even after students have paid their fees among others.

The lawmaker alleged collusion between some tertiary institutions and financial institutions to delay, divert, or conceal student loan disbursements.

He said instances had emerged where institutions received funds on behalf of students but failed to inform the beneficiaries or update their financial records, a direct violation of the Nigerian Education Loan Fund (NELFUND) guidelines.

The lawmaker also referenced findings by the Federal Ministry of Education, which uncovered unauthorised deductions from student loan payments by certain universities. Describing such actions as a gross breach of public trust and a violation of the Student Loans Act, Mustapha called for urgent legislative scrutiny.

He further revealed that the programme was plagued by weak verification systems, citing examples of inflated school fees uploaded to the NELFUND portal, disbursements made to students who had already graduated, and payments sent to institutions even after students had independently paid their tuition.

“These infractions not only undermine the objectives of the student loan scheme but may have denied thousands of Nigerian students their rightful access to education,” Mustapha stated. “If left unchecked, these practices risk eroding public confidence in the integrity of the loan programme,” he stated.

Following extensive deliberation, the House urged NELFUND to strengthen its verification and monitoring mechanisms through the deployment of advanced IT solutions. Lawmakers also called for sanctions against any tertiary institution found guilty of violating the Student Loans Act or its operational guidelines.

The House has mandated its relevant committees to carry out thorough investigation and asked institutions to refund fees paid by students.