The House of Representatives Wednesday, resolved to investigate the alleged unethical practices in the disbursement of student loans under Nigerian Education Loan Fund (NELFUND) and ensure compliance with the Student Loans (Access to Higher Education) Act, 2024.

The House also urged NELFUND to implement advanced IT solutions to enhance verification and streamline processes within the system and report to relevant authorities and sanction any institution found in violation of the Act or guidelines.

The lawmakers equally directed all tertiary institutions to immediately refund students who paid their tuition fees before their NELFUND loan disbursement.

The resolution followed the adoption of a motion sponsored by Aliyu Mustapha (PDP, Kaduna)

While presenting the motion, the lawmaker noted that the Student Loans (Access to Higher Education) Act, 2024, was enacted to ensure transparent, timely, and equitable access to interest-free loans for all Nigerian students pursuing higher education.

He said significant progress has been made in the programme so far, with over half a million applicants and the disbursement of over N54 billion to beneficiaries across the country.

“Aware that a recent report by the National Orientation Agency (NOA) alleges Collusion between certain tertiary institutions and financial institutions to delay, divert, or conceal disbursement of student loans under the Nigerian Education Loan Fund (NELFUND).

“Also aware that the National Orientation Agency and NELFUND have uncovered that some institutions received loan disbursements but failed to notify beneficiaries or update financial records, which is a violation of the NELFUND Guidelines, raising concerns over transparency and accountability.

“Further aware that the Federal Ministry of Education has initiated a probe into alleged unauthorized deductions from student loans by some universities, describing the act as a gross violation of public trust and a breach of the Student Loans Act, 2024.

“Concerned about reports of mismanagement and lack of proper verification, including instances where tertiary institutions upload inflated school fees on the NELFUND portal, cases of final-year students receiving loans after graduation and disbarments made to tertiary institutions even after students have fully paid their tuition fees to avoid delays”.

Continuing, Abdullahi expressed worry that the violations of NELFUND guidelines by some institutions may have denied thousands of students their rightful access to loans and undermined the credibility of the loan scheme; further worried that, without robust oversight and enforcement, such violations may continue unchecked, undermining public confidence in the student loan programme.

The motion was passed and referred to the House Committees on Student Loans, Scholarships and Higher Education Financing; Banking and Other Ancillary Institutions; Anti-Corruption; University Education to investigate the alleged diversion, non-disclosure, and mismanagement of student loan disbursements, as well as non-compliance with the Student Loans Act, 2024, and report back to the House within four weeks.