NOA Moves to Ensure Transparency in NELFUND Disbursements
Ayodeji Ake
The National Orientation Agency (NOA) is intensifying efforts to ensure transparency and accountability in the students’ loan scheme disbursements under the Nigeria Education Loan Fund (NELFUND).
President Bola Tinubu had on April 3, 2024, signed into law the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Bill, 2024. The law seeks to guarantee sustainable higher education and functional skill development for all Nigerian students and youths.
As at March, 2025 NELFUND announced that it has disbursed a total of N45.1 billion in student loans across the country from its inception in May 2024 to 25th March 2025.
But along the line, like other similar government public projects with expected teething challenges, investigation revealed alleged fraud in the disbursement of the student loans.
The NOA and NELFUND uncovered universities and banks allegedly withholding approved student loans, raising transparency and accountability concerns nationwide.
According to the findings some universities and financial institutions have allegedly conspired to withhold or delay loan disbursements meant for students, raising serious concerns over transparency and accountability in the new student loan scheme.
Confirming the malpractice, NELFUND Managing Director, Mr. Akintunde Sawyerr, stated that his agency is prepared to take legal action against any institution found culpable.
However, in a response and in the bid to tame this ugly trend, NOA had issued a nationwide directive to all state directorates to gather feedback from students and monitor the implementation of the loan scheme.
The agency said it will ensure that appropriate disciplinary and legal measures are taken against schools and banks found to be in violation.
Deputy Director of Communications and Media, NOA, Paul Odenyi, had in a statement, further reiterated the agency’s commitment to ensuring that the objectives of the student loan scheme are not derailed. “This is about safeguarding the future of education in Nigeria,” he said.
The statement stressed the Director General of NOA, Malam Lanre Issa-Onilu, as having disclosed the development following a strategic meeting with the Managing Director of NELFUND, Mr. Akintunde Sawyerr.
The revelation, the release said, was based on reports gathered by Community Orientation and Mobilisation Officers (COMO) across the country.
“Our officers have been engaging with students and education stakeholders. We received credible reports indicating that some institutions, in collaboration with banks, are withholding vital information about the loan disbursements or failing to credit students even after funds have been released,” Issa-Onilu said.
The findings, he said, point to a disturbing pattern wherein institutions reportedly receive funds directly from NELFUND but fail to notify students or reflect the payments in their financial records. In some cases, students are still asked to pay tuition fees out-of-pocket, despite their loans being approved and disbursed on paper.
The agency said it will ensure that appropriate disciplinary and legal measures are taken against schools and banks found to be in violation.
The desire to fulfil the DG’s mandate and directive on the fraud allegation might have prompted the management of the Lagos Directorate of the agency to explore different critical avenues and platforms in carrying out this responsibility, including exploring the airwave to achieve a more detailed and comprehensive findings.
Precisely on Monday, April 15, 2025, the Lagos State Director of the National Orientation Agency (NOA), Dr. Mustafa Adedeji Tukur, had reiterated the Federal Government’s commitment to transparency and accountability in the disbursement of the Nigeria Education Loan Fund (NELFUND) during a live interview programme “ Ojuse Tani” on Bond FM 92.9 .
Speaking during the programme, Dr. Tukur emphasised the agency’s support for the DG’s position and warned that such unethical acts will not be tolerated.
He assured listeners that the government was working seriously to fish out, apprehend, and prosecute all offenders found to be involved in these fraudulent activities.
The interactive session featured multiple callers who raised critical questions and concerns. One caller inquired about the timeline for loan repayment, to which Dr. Tukur responded that repayment is expected to begin only after the beneficiary has secured employment.
Another caller urged the government to ensure job creation for graduates, emphasising that without employment opportunities, repayment would be unrealistic.
In response, Dr. Tukur highlighted that the Federal Government is actively implementing programmes aimed at reducing unemployment to the barest minimum. He noted that several initiatives and grants are being channeled toward empowering young entrepreneurs across the country.
A concerned parent also called in, revealing a case of fraud involving his son’s institution and requested an audience with Dr. Tukur after the programme.
The NOA Director welcomed the engagement and reiterated the agency’s readiness to take up credible complaints.
The final caller commended the government for launching the student loan scheme but lamented that corrupt elements within schools and banks were undermining its effectiveness. He called for the immediate arrest and prosecution of those sabotaging the initiative.
Dr. Tukur concluded the programme by reaffirming NOA’s determination to ensure that students benefit fully from government interventions and called on the public to report any misconduct for prompt action.
Aside the Lagos NOA Director, Dr Mustafa Adedeji Tukur, other personalities that participated in the 30 minute live interview segment of the “Ojuse Tani” programme included, Mr Abiola Peters, Assistant Director News, Bond FM, Lagos and Anchor Ojuse Tani programme, Abiodun Elugbaju.
