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Home » News » EXPOSED: Shocking Corruption Scandal Rocks Nigeria’s Student Loan Scheme

EXPOSED: Shocking Corruption Scandal Rocks Nigeria’s Student Loan Scheme

April 13, 2025
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Abuja, NIGERIA — In a developing scandal within Nigeria’s education sector, a recent investigation has revealed troubling irregularities in the distribution of the Federal Government’s Student Loan Fund. According to findings from the National Orientation Agency (NOA), certain universities and banks are allegedly colluding to deprive students of the financial support intended for their education.

The revelations, made public by Mallam Lanre Issa-Onilu, the Director General of the NOA, have ignited outrage nationwide. Following a high-level meeting over the weekend with the Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr. Akintunde Sawyerr, damning evidence emerged that paints a troubling picture of greed and systemic exploitation.

According to Paul Odenyi, Deputy Director of Communications and Media at the NOA, early findings from the agency’s Community Orientation and Mobilisation Officers (COMO) suggest that officials at some universities have been deliberately withholding critical information about loan disbursements. In even more disturbing revelations, certain banks are allegedly delaying payments to successful student applicants, manipulating the system for personal and institutional gain.

But it doesn’t stop there.

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NELFUND’s own findings, corroborated by the NOA, reveal that some institutions have gone as far as receiving the loan funds directly into their own accounts — and then refusing to inform students or even acknowledge the payments. Meanwhile, unsuspecting students are being hounded for tuition fees, unaware that the money meant to cover their expenses has already been paid on their behalf.

“This is a gross betrayal of trust,” fumed Mr. Sawyerr. “Withholding crucial financial information from the very students these loans are meant to assist is not just unethical — it is a flagrant violation of NELFUND’s core principles. We will not hesitate to take legal action against any institution found engaging in these deceitful practices.”

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The NOA, not taking the matter lightly, has now activated its nationwide network of state directorates to intensify surveillance and gather student feedback across the country. The goal? To identify, expose, and punish all institutions and financial entities involved in this underhanded scheme.

Mallam Issa-Onilu issued a stern ultimatum to the universities and banks implicated, demanding an immediate cessation of these “unpatriotic and immoral” acts. “We will ensure the Federal Government responds swiftly and decisively. This abuse of public trust will not be tolerated,” he declared.

As students and parents demand accountability, Nigerians are left to wonder: How many futures have been sabotaged by the very institutions meant to support them?

Tags: educationNational Orientation AgencyNELFUNDNigerian Education Loan FundNOA
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