The House of Representatives has adopted a resolution to launch an investigation into reported breaches of the Student Loan Act.
This development follows a motion of urgent public importance presented by Aliyu Abdullahi, highlighting alleged irregularities in the administration of student loans.
While presenting the motion, Mustapha raised serious concerns about alleged malpractices undermining the integrity and transparency of the student loan scheme created under the Student Loans (Access to Higher Education) Act, 2024.
The initiative, which provides interest-free loans to qualified Nigerian students, has reportedly registered over 500,000 applicants and disbursed more than ₦54 billion across the country. However, Mustapha pointed to troubling findings that question the scheme’s administration.
He cited instances where graduates continued to receive loan disbursements and cases where payments were made to institutions even after students had already paid their fees.
Mustapha also alleged that some tertiary institutions were working in collusion with financial institutions to delay, misappropriate, or hide student loan funds.
He noted that in several instances, institutions received money on behalf of students without informing the beneficiaries or updating their financial records—an apparent breach of Nigerian Education Loan Fund (NELFUND) guidelines.
Additionally, Mustapha referenced findings from the Federal Ministry of Education which uncovered unauthorized deductions from loan disbursements by certain universities. He described such actions as a grave violation of public trust and non-compliance with the Student Loans Act, urging immediate legislative oversight.
He further noted that the programme faces challenges with its verification process, including inflated tuition figures uploaded to the NELFUND portal, payments issued to already graduated students, and funds sent to institutions despite students having settled their tuition independently.
“These infractions not only undermine the objectives of the student loan scheme but may have denied thousands of Nigerian students their rightful access to education,” Mustapha said. “If left unchecked, these practices risk eroding public confidence in the integrity of the loan programme.”
After a comprehensive debate, the House urged NELFUND to enhance its verification and monitoring systems by integrating advanced IT solutions. Lawmakers also called for disciplinary actions against any institution found violating the Student Loans Act or its operational procedures.
The House has directed its relevant committees to conduct a detailed investigation and ordered that institutions refund fees already paid by students.