The House of Representatives has launched a probe into alleged violations of the Student Loans (Access to Higher Education) Act, 2024, following revelations of misconduct in the administration of the much-anticipated student loan scheme.
The decision was reached after a motion of urgent public importance was moved by Hon. Aliyu Abdullahi and presented by Hon. Mustapha on the House floor.
The lawmakers expressed alarm at growing irregularities threatening the credibility of the loan programme designed to offer interest-free loans to eligible Nigerian students.
According to Mustapha, over 500,000 students have already registered under the scheme with disbursements exceeding ₦54 billion.
However, he raised the alarm over reports suggesting that the integrity of the scheme is being undermined by institutional malpractice and fraudulent activity.
“Students who have completed their studies are still receiving loans. We are seeing cases where fees already paid by students are again paid by the government to institutions,” Mustapha told lawmakers.
He alleged collusion between some tertiary institutions and financial institutions to manipulate the loan process—ranging from delayed or concealed disbursements to unauthorized deductions by universities.
In a particularly damning accusation, Mustapha cited findings by the Federal Ministry of Education showing that some institutions had withheld information from student beneficiaries or failed to update student accounts, despite receiving payments from the Nigerian Education Loan Fund (NELFUND).
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“There are serious loopholes in the verification process. We are seeing inflated tuition fees uploaded to the portal, loans disbursed to ineligible or already-graduated students, and general mismanagement,” he said.
“These actions not only contravene the Student Loans Act but betray public trust and deny deserving students the support they need for their education,” Mustapha added.
In response, the House has tasked its relevant committees with conducting a thorough investigation into the scheme’s management.
Lawmakers have also urged NELFUND to enhance its monitoring systems, suggesting the use of advanced IT solutions to improve transparency and accountability.
Institutions found to have violated the loan regulations have been directed to make refunds, and lawmakers have called for punitive action to deter future infractions.
The probe is expected to provide clarity on the extent of the reported malpractice and restore public confidence in the student loan initiative.