The National Orientation Agency (NOA) has exposed a disturbing network of fraudulent practices within Nigeria’s student loan system, implicating both commercial banks and tertiary institutions. The revelations have sparked serious concerns about the transparency and integrity of the loan disbursement process, prompting urgent calls for reforms and accountability.
In a press briefing, the NOA revealed that its investigation uncovered multiple instances of manipulation within the student loan scheme, which was designed to provide financial support to eligible students. Banks were found to have inflated loan amounts or diverted funds meant for students, while certain universities were reportedly complicit, collaborating with the financial institutions to facilitate these fraudulent activities.
“This discovery is deeply troubling,” said the NOA Director-General. “What was meant to be a tool for empowering students from disadvantaged backgrounds has been hijacked by corruption for financial gain.”
The investigation further uncovered that students applying for loans were subjected to inflated administrative fees, and in some cases, they were misled about the terms of their loans. Some students received far less than the approved amounts, with portions of their funds siphoned off by intermediaries within both the educational institutions and banking partners.
The scandal has raised urgent questions about the current oversight and accountability mechanisms governing the student loan system. Intended to ease the financial burden of tuition and academic expenses for deserving students, the scheme has instead been undermined by significant breaches of trust.
“Many students who applied for loans never saw a dime, and others received far less than what they were entitled to,” said a representative from the Students Union. “This is not just about the money; it’s about betraying the hopes and futures of young Nigerians.”
In response to the widespread fraud, the NOA has called for an immediate overhaul of the student loan system, including the implementation of stricter regulatory measures for both banks and tertiary institutions involved in the disbursement process. The federal government has vowed to launch a full investigation into the matter and ensure that those responsible face legal consequences.
“We will ensure that all guilty parties are held accountable,” stated the Minister of Education. “The student loan scheme will be restructured to restore transparency, and we will work closely with relevant agencies to prevent such abuses from happening again.”
As the investigation continues, the primary focus will be on reforming the system to restore public trust and ensure that the student loan program truly supports Nigeria’s future leaders in their pursuit of higher education.
source: independent.ng
