The Federal Government’s revelation has sparked public outcry and growing concern about the integrity of the student loan system, which was introduced to support Nigerian students facing financial hardship in accessing higher education. Stakeholders are now questioning how institutions tasked with nurturing the next generation could engage in such practices, and why such systemic abuse was allowed to persist undetected until now.
The National Orientation Agency emphasized that the scheme was designed to remove financial barriers to education and support inclusive growth across Nigeria’s academic landscape. However, the discovery of these unethical practices undermines the credibility of the initiative and puts thousands of students at risk of being shut out of educational opportunities.
The Director General of NOA called for urgent reforms and stricter monitoring of the loan disbursement process, stressing that both institutions and financial service providers must be held accountable. He also urged affected students to come forward with their experiences, while assuring them of government support in reclaiming their funds.
Although the NOA did not disclose the names of the offending universities or banks, the agency confirmed that further investigations are ongoing. The findings will be submitted to relevant authorities for action, and punitive measures are expected to follow.
The Nigerian Education Loan Fund (NELFUND), which manages the student loan scheme, has also pledged to work closely with government agencies to clean up the system and restore public confidence. The Managing Director of NELFUND expressed disappointment over the revelations and reaffirmed the fund’s commitment to transparency and fairness.
Meanwhile, civil society groups and education advocates have called for a public inquiry into the scandal and demanded the publication of a full list of implicated institutions. They insist that any institution or bank found guilty should face sanctions, including possible exclusion from future partnerships with the government.
This development has reignited broader debates on the accountability of tertiary institutions in Nigeria and the urgent need for stronger governance in the education sector. While the student loan programme was launched with the promise of easing access to education, its success now depends on restoring transparency and ensuring that the funds reach the intended beneficiaries without interference or exploitation.
