The National Orientation Agency’s prompt identification of misconduct in the implementation of the Federal Student Loan Fund showcases the agency’s commitment to its mandate, writes Gboyega Alaka.
Last weekend, the National Orientation Agency (NOA) alerted Nigerians, particularly students in tertiary institutions, about unethical practices it discovered regarding the disbursement of the Federal Student Loan Fund by certain tertiary institutions and banks.
This situation arose from the discovery that tertiary institutions, with the complicity of banks, are conspiring to shortchange beneficiaries of the National Education Loan Fund (NELFUND). NELFUND is the organisation legally established to manage the daily operations of the fund. Its primary objective is to provide financial support to qualified Nigerians through interest-free loans for tuition, fees, and living expenses during their time at approved tertiary academic and vocational institutions, as well as skills acquisition programmes within the country.
The discovery was announced by Mallam Lanre Issa-Onilu, the Director-General of the National Orientation Agency (NOA), following a meeting with Mr. Akintunde Sawyerr, the Managing Director of NELFUND. Issa-Onilu indicated that the latest report from the NOA’s Community Orientation and Mobilisation Officers (COMO) revealed concerning information. It suggested that officials at tertiary institutions, in collusion with banks, have been shortchanging eligible beneficiaries and obstructing the operations of the fund by withholding essential information regarding loan disbursements.
The Director-General of the NOA specifically stated that officials at institutions of higher learning, along with their accomplices in banking institutions, are intentionally delaying payments to successful student applicants for personal financial gain. In some cases, universities have failed to acknowledge fund disbursements by NELFUND and have not communicated these disbursements to the students who were successful in their applications.
This issue was further confirmed by the Managing Director of NELFUND, who noted that certain institutions are neglecting to inform students about loan disbursements made on their behalf. As a result, these institutions are leaving students, whose tuition fees have already been paid by NELFUND, to seek additional funds to cover their tuition, potentially disrupting their studies.
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“Recent findings by NELFUND have shown that some institutions have received student loan disbursements directly into their accounts, yet neglect to inform the affected students or record the payments in their financial records, leading to unnecessary confusion. Withholding critical financial information from students is not only unethical but also a breach of the principles on which NELFUND was founded. We are prepared to take legal action against any institution engaged in such deceptive practices,” said Saywerr.
His confirmation was immediately followed by a stern warning to the affected institutions and their collaborating banking partners to cease all activities without delay. To ensure compliance with this directive, the NOA instructed its state-level directorates to gather additional feedback from students nationwide. This feedback will help the Federal Government take appropriate actions against the institutions involved in these unethical practices.
The decision of the NOA to blow the lid on the misconduct demonstrates its vigilance. This action aims to encourage both beneficiaries and the broader public to remain alert, helping to alleviate the financial pressure on students and their parents or guardians, who are often burdened with the search for alternative funding.
Figures released by NELFUND in December 2024 indicated that as of November 29 of the same year, loans had been disbursed to a total of 613,734 students in approved tertiary institutions across the country since the programme’s inception. The funds disbursed include institutional fees, which are typically paid directly to the institutions, as well as upkeep loans that are deposited directly into the accounts provided by successful applicants.
A total of 320,837 applicants applied for institutional fees, resulting in the disbursement of N33.9 billion. Additionally, N70.2 billion was provided as upkeep loans to 292,897 applicants.
These loans have allowed students to continue their education without the fear of dropping out, preventing potential disruptions in their studies.
The NOA’s intervention pleased many students, some of whom took to the agency’s X handle to express their satisfaction. Many others confirmed the findings of the investigation and shared their struggles with obtaining refunds for the fees they were forced to pay when their institutions did not inform them that NELFUND had disbursed loans to cover these fees.
One of such handles @NELFUNDBENEFIARIESNIGERIA thanked the NOA for looking out for the students, adding that it appreciates the bold step of calling out erring institutions and their collaborators. “Thank you@NOA_Nigeria for standing with Nigerian students! As NELFUND Beneficiaries, we’ve witnessed firsthand how some institutions withhold disbursed funds. We appreciate this bold step and hope to see swift action. Every student deserves transparency and access. #NELFUNDcares”
Another X user, @ramytrase, described the Student Loan initiative as one of the best policies of the current government and called for an end to its abuse by unscrupulous people. “This is one of the best policy (sic) that has touch (sic) the lives of Nigerians. Please help us checkmate those who want to undermine it (sic) success. Those institution depriving students from benefitting from this (sic) initiatives must be prosecuted,” he wrote.
One Deji Idowu, posting from the handle, @dygee_web3, suggested that the NOA’s disclosure may have stuck a pin in the balloon of the unethical practices by the institutions and banks. “Some of the schools may have done a quick one with the banks to fix the monies due to students so that can accrue interest. This endemic corruption is gonna finish Nigeria if something drastic is not done. Haba,” he posted.
The NOA’s investigation into the questionable practices within the student loan initiative supports the widely held belief that the agency, under its current leadership, is becoming more relevant to citizens and the nation. This is due to a realignment of its activities aimed at delivering long-lasting benefits in the form of meaningful, value-driven change.
The proposed societal change is being implemented through a series of initiatives and programmes centered around the National Values Charter. This charter serves as a social contract that includes seven promises from the country and seven responsibilities for its citizens. The aim of this approach is to foster patriotism through mutual accountability between the government and the people. This marks a shift from the previous strategy, which was primarily focused on what citizens could do for the country without reciprocating responsibilities from the government.
The NOA also developed the CLHEEAN community project, which is designed to deliver a variety of interventions across the country by addressing societal issues such as crime, lawlessness, health, environment, education, abuse and drug use. The agency is building capacity, expertise and deploying resources to implement credible campaigns to bring about the envisaged change. To make this vision a reality, the NOA has secured approval for policies aimed at reinforcing its role in promoting national values and identity. A key element of this initiative is the Citizen Value Brigade (CVB), which is designed to instill Nigerian values in children and nurture future leaders. This effort is further supported by ongoing advocacy for the development of local cartoon content to counter foreign influences and promote Nigerian culture, with the goal of fostering a distinctly Nigerian identity from childhood.
The agency has made efforts to revitalise national symbols, such as the national flag and anthem, by providing guidelines on their proper use and giving them new significance. Recognising the role of the media in shaping public perception, the agency introduced The Explainer newsletter to ensure the accurate and meaningful dissemination of information. The Explainer is a publication that provides robust reporting and analysis of government activities and achievements. Closely related to this, the agency established state-of-the-art audio-visual studios to enhance its communication capabilities, launched a more efficient and user-friendly website featuring an AI-powered voice and chat assistant. That way, the agency is able communicate directly to the citizens, with technology enabling the NOA to integrate its messaging, leveraging its presence in the 36 states of the federation, the Federal Capital Territory and the 774 local councils.
