The National Orientation Agency (NOA) has ramped up efforts to ensure transparency and accountability in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND), following reports of irregularities by some universities and financial institutions.
President Bola Tinubu signed the re-enacted Student Loans Act into law on April 3, 2024, to improve access to higher education and vocational skills for Nigerian youths. Since the scheme’s rollout in May 2024, NELFUND has disbursed over ₦45.1 billion in student loans as of March 25, 2025.
However, allegations of malpractice have emerged, with some universities and banks reportedly withholding or delaying loan disbursements. Investigations by NOA and NELFUND have revealed cases where approved loans were not credited to students, despite funds being released, raising red flags over transparency in the system.
NELFUND Managing Director, Akintunde Sawyerr, confirmed the irregularities and stated the agency is prepared to pursue legal action against any institution found culpable. “We will not tolerate mismanagement of public funds. Institutions that fail to credit students must be held accountable,” he said.
To address the issue, NOA issued a nationwide directive to its state offices to collect feedback from students and monitor the loan process at the grassroots. The agency warned that schools and banks involved in any malpractice would face disciplinary and legal consequences.
Deputy Director of Communications and Media, NOA, Paul Odenyi, reiterated the agency’s commitment to protecting the integrity of the loan scheme. “This is about safeguarding the future of education in Nigeria,” he stated.
Following a strategic meeting with NELFUND, NOA Director General, Mallam Lanre Issa-Onilu, disclosed that the fraud reports were compiled by Community Orientation and Mobilisation Officers (COMOs) nationwide. These reports allege that some institutions, in collusion with banks, failed to notify students of successful disbursements or misrepresented the loan status in their records.
In some cases, students were still required to pay fees out-of-pocket despite having approved loans. NOA vowed to ensure affected students receive justice and called for prompt reporting of such incidents.
The Lagos State Directorate of NOA has taken the lead in sensitization efforts. On April 15, 2025, Lagos NOA Director, Dr. Mustafa Adedeji Tukur, addressed the issue during a live radio programme Ojuse Tani on Bond FM 92.9. He reaffirmed the government’s zero-tolerance stance on corruption and promised swift action against violators.
During the interactive session, Dr. Tukur clarified that loan repayment would begin only after beneficiaries gain employment. He also assured the public that job creation remains a federal priority, with several programmes underway to empower young graduates and entrepreneurs.
Callers to the programme raised critical concerns, including cases of institutional fraud and the need for better enforcement. Dr. Tukur welcomed all credible complaints and encouraged continued public engagement.
Other guests on the show included Mr. Abiola Peters, Assistant Director of News at Bond FM, and the programme anchor, Abiodun Elugbaju.
NOA concluded by reaffirming its commitment to ensuring the success of the student loan initiative and called on all stakeholders to support efforts to eliminate corruption and promote equitable access to education.
