Reps Probe Student Loan Irregularities in Nigeria

By Oluuwakemi Kindness

The House of Representatives has launched an investigation into alleged unethical practices in the disbursement of Nigeria’s student loan scheme, following reports of irregularities and lack of transparency in the process.

The probe by a Joint Committee of the House, focuses on the implementation of the Nigerian Education Loan Fund (NELFUND), established under the Student Loans (Access to Higher Education) Act, 2024.

With this the committee held a one-day public hearing on Thursday in Abuja to scrutinize the loan administration system and to address concerns raised by the National Orientation Agency and other stakeholders.

Speaker of the House, Tajudeen Abbas, who declared the hearing open, described the exercise as both a constitutional obligation and a moral duty.

“This hearing is a constitutional imperative and a moral duty to the Nigerian people, especially the young citizens whose future is tied to the integrity of our education financing system,” he said.

He noted that the student loan scheme, introduced under President Bola Tinubu’s Renewed Hope Agenda, is a landmark effort aimed at widening access to tertiary education.

According to Abbas who was represented by the Deputy Minority Leader, Aliyu Madaki, said over 600,000 students have applied for the loan, with more than ₦73 billion already disbursed.

However, he expressed concern over emerging reports of alleged diversions, administrative inefficiencies, and possible collusion by institutions and individuals to delay or mismanage disbursements.

“We cannot allow this programme to be undermined by regulatory gaps or deliberate abuse of process,” he said. “The credibility of the initiative and the trust of Nigerians in public institutions are at stake.”

Abbas outlined the objectives of the investigation, including verifying the authenticity of reported violations, identifying structural or administrative weaknesses, and recommending appropriate sanctions where necessary.

Earlier, Chairman of the Committee, Ifeoluwa Ehindero, said the initiative has brought relief to thousands of families, with tangible results across 206 federal and state institutions.

As of 30 June, he said, ₦73.1 billion had been disbursed to 366,247 student beneficiaries, with ₦38.26 billion allocated to tuition fees and ₦34.85 billion to upkeep allowances.

Ehindero emphasized that the committee’s goal is not punitive but reformative.

“We are not out to witch-hunt anyone,” he said. “Our objective is to ensure prudent accountability, improve the disbursement process, and add value to all stakeholders.”

For the Managing Director of NELFUND, Akintunde Sawyer, he told the committee that over 650,000 students have registered for the scheme, with approximately 2,000 applications processed daily.

He explained that all submissions undergo a verification process, and payments are made directly to institutions on behalf of successful applicants.

The joint hearing, involving the Committees on Student Loans, Public Accounts, Banking and Other Ancillary Institutions, Anti-Corruption, and University Education, aims to shed light on claims of delays, mismanagement, and potential collusion within the loan programme.

Further sessions are expected in the coming weeks, as lawmakers hear from regulators, educational institutions, and affected students, in a bid to restore public confidence in the initiative.