The House of Representatives has launched a full-scale investigation into the administration of Nigeria’s student loan scheme following allegations of fund misappropriation, lack of transparency, and procedural irregularities.
At a public hearing held Tuesday in Abuja, Speaker of the House, Tajudeen Abbas, said lawmakers are determined to protect the integrity of the Nigerian Education Loan Fund (NELFUND) and ensure that no misconduct undermines what is considered a critical pillar of the Renewed Hope Agenda of President Bola Ahmed Tinubu.
“This probe is not a witch-hunt. It is a constitutional obligation to guarantee that every naira intended for Nigerian students is used transparently and responsibly,” Abbas declared.
The joint hearing, convened by the House Committees on Public Accounts and Students Loans, seeks to uncover issues surrounding delayed fund disbursements, alleged collusion among stakeholders, and operational inefficiencies that could threaten the long-term sustainability of the scheme.
So far, NELFUND has processed over 600,000 applications, disbursing more than N73 billion to beneficiaries across federal and state tertiary institutions. However, reports of opaque practices and oversight failures have prompted growing public concern.
According to Abbas, “Public confidence is at stake. We cannot stand by while allegations of misconduct cloud a programme designed to support millions of aspiring students.”
Committee Chairman Ifeoluwa Ehindero disclosed that, as of June 30, a total of N73.1 billion had been disbursed to 366,247 students across 206 institutions. He noted that N38.26 billion was allocated to tuition, while N34.85 billion went to maintenance stipends.
Ehindero emphasized that the hearing’s primary goal is to improve the loan framework, bolster transparency, and ensure the system functions in the best interest of Nigerian students.
Managing Director of NELFUND, Akintunde Sawyer, provided reassurances that each application undergoes a rigorous verification process, and that all approved funds are paid directly to institutions, not students.
The House Committees plan to hold additional hearings involving regulators, educational institutions, and affected students, with the aim of restoring public trust and strengthening one of Nigeria’s most ambitious education financing programmes.
