The recent discovery by the Nigerian Education Loan Fund (NELFUND) that some institutions across the country connive with certain financial institutions to intentionally withhold student loan disbursements is not only wicked, but also a reflection of how deeply corruption has eaten into the fabric of our citadels of learning—places that should be towers of dignity.
NELFUND should not generalize the issue. The CEO and Managing Director of the Fund, Mr. Akintunde Sawyerr, should be bold enough to name and shame such erring institutions. That is the only way to put the culpable institutions on their toes.
Before NELFUND’s revelation, thousands of undergraduates—whom the loans are designed for—had complained on social media that their institutions either denied them access or withheld vital student loans. Even when their dashboards read “verified” and “disbursed,” some of these inhumane institutions turned them away and indirectly pressured them to pay fees that had already been covered by NELFUND. This is not just cruel—it shows how certain officials have allowed corruption to erase even the tiniest bit of compassion in their veins.
The aim of the student loan scheme, officially launched by President Bola Tinubu in 2024, was to ensure that underprivileged Nigerians—whose parents struggle to make ends meet—do not drop out of school.
It has been a lifesaver for thousands of parents and students pursuing various degree programmes across Nigeria’s higher institutions. The applicants don’t just benefit from institutional loans that cover their tuition—paid directly into the institutions’ accounts—they also receive a monthly stipend (upkeep loan) to take care of other expenses.
But it now seems that some of these supposed citadels of integrity are the real saboteurs of this fantastic, interest-free student aid.
To corroborate NELFUND’s discovery of these unethical practices, the National Orientation Agency (NOA), through its Director General, Mallam Lanre Issa-Onilu, echoed similar concerns. Onilu specifically stated that “specific institutions have, in connivance with some banks, deliberately delayed payments to successful student applicants for personal financial benefit.”
These are not allegations to be swept under the carpet. The affected institutions and banks appear to have conspired with intention to commit fraud. Sadly, some students who had already made payments for the same tuition fees NELFUND covered alleged that their institutions are now deploying delay tactics to avoid refunding them.
Institutions that see NELFUND as national cake and think they can tamper with it must be made to understand that beneficiaries have signed undertakings and agreed to the terms and conditions guiding the education loan—including repayment. It’s not free money.
As a measure to hold these institutions accountable, NELFUND should attach a tracking and payment reference number to every disbursement made on behalf of any beneficiary. This will enable students to present solid proof of payment to their institution’s bursary department.
The Fund should also intensify efforts to integrate the NELFUND dashboard with institutional portals, making it possible for NELFUND to directly credit the “school wallet” of successful applicants. From there, students can make payments transparently and without delay.
NELFUND is a massive project, praised by many African countries that are already studying the model. It must not fail. Akintunde Sawyerr must not allow financial hawks and predators within these institutions to stain his more than three decades of excellent integrity in the private sectors. He must name and shame the erring institutions.
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