Unveiling the Crisis: Student Loans in Nigeria
In Nigeria, when institutions become complicit and the system itself begins to lose the trust of its beneficiaries, it often takes an unlikely hero to sound the alarm. A few weeks ago, a friend shared a story about his niece, a student at a federal university in the North Central region, who had applied for a student loan under the Nigerian Education Loan Fund (NELFUND). She was excited when her application was approved—until she learned that the funds supplied were never credited into her account. Instead, the university had quietly deducted ‘administrative fees’ and delayed notifications, leaving her stranded.
This is not an isolated case. Across the country, particularly in the North Central states—Benue, Kogi, Kwara, Nasarawa, Niger, and Plateau—thousands of students faced similar challenges. And just when public frustration was boiling over, the National Orientation Agency (NOA), known more for its grassroots campaigns than high-stakes policy interventions, stepped in.
Lofty Promises
The Student Loans (Access to Higher Education) Act of 2024 promised a lifeline for undergraduates struggling with tuition fees. Under NELFUND’s stewardship, over ?56.85 billion was reportedly disbursed in tuition and upkeep allowances for more than 550,000 students. But as the rollout progressed, stories of mismanagement grew louder. Reports emerged of tertiary institutions withholding funds or charging hidden fees ranging from ?3,500 to ?30,000 per student, without transparency.
It was in this climate that NOA’s Director-General, Lanre Issa-Onilu, took the unprecedented step of issuing a public alert. His agency’s community-based monitors, deployed across the country, gathered firsthand complaints from affected students. This grassroots approach unearthed a troubling pattern: several universities were either misappropriating the funds or failing to inform students of disbursements.
The Numbers
While the North West region reportedly received about ?5.84 billion in disbursed loans, the North Central zone received a much lower ?2.53 billion, covering 25,859 students across 18 institutions. Disparities in allocations and management became glaring, hinting at possible regional biases or inefficiencies in the process. In many cases, universities claimed to have remitted loans to students but couldn’t provide verifiable evidence.
In the Spotlight
NOA’s whistleblowing effort drew attention not only to NELFUND but also to complicit universities and financial intermediaries. NELFUND’s initial response—insisting that the disbursement figures included funds for prior programs—did little to calm public anger. The Independent Corrupt Practices and Other Related Offences Commission (ICPC) launched a formal investigation into the scheme. Early findings suggested that of the ?100 billion earmarked for the program, only about ?28.8 billion was traceable to student beneficiaries. The remaining ?71.2 billion was shrouded in opacity.
Meanwhile, the Federal Ministry of Education, led by Dr. Maruf Olatunji Alausa, convened emergency meetings with vice-chancellors of implicated institutions and NELFUND officials. The government promised corrective actions, including harmonizing disbursement protocols and introducing stringent monitoring mechanisms.
Kudos to NOA
For an agency often overshadowed by regulatory behemoths, NOA’s role in this saga is a study in the power of grassroots vigilance. While its primary mandate revolves around public enlightenment and orientation, its rapid response to student grievances demonstrated how proactive governance can restore confidence in public institutions.
One could argue that without NOA’s intervention, thousands of Nigerian students, particularly those in underserved regions like North Central, might have been left at the mercy of bureaucratic inertia and institutional corruption.
The Task Ahead
As investigations unfold and reforms take shape, the broader lesson remains clear. Nigeria’s ambition to democratize education will flounder without transparency and accountability. The NOA’s whistleblowing isn’t just a story of an agency saving the day—it’s a clarion call for systemic reform, reminding us that safeguarding public trust is a collective responsibility.
If the government and stakeholders heed this call, future disbursements will not only be more transparent but will also restore faith in the very institutions designed to empower Nigeria’s youth.
