Gloria Essien Abuja
The House of Representatives has begun an investigation into the alleged Unethical Practices in the Disbursement of the loan across Nigeria.
This is as the House of Representatives Joint Committee on Student Loan, Scholarships and Higher Education Financing, Banking and Other Ancillary Institutions, Anti-corruption and University Education, holds a One Day Public Hearing on the matter.
The Speaker of the House of Representatives Mr Tajudeen Abbas, who declared the hearing open, said that the hearing was imperative following a recent report by the National Orientation Agency
He urged the stakeholders to cooperate with the committee to unravel the allegations.
“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”. Mr. Abbas said.
The Speaker noted that the establishment of the Nigerian Education Loan Fund (NELFUND) through the Student Loans (Access to Higher Education) Act, 2024, marked a bold step towards equitable access to higher education in Nigeria.
“It is one of the most precious legacies of the Renewed Hope Agenda of President Ahmed Bola Tinubu’s administration with over 600,000 applications and more than N73 billion disbursed to students across the country, it represents a landmark policy.
However, the emergence of troubling reports about alleged diversions, non-compliance, and unethical practices in the disbursement process threatens to derail this important national intervention.
“This House cannot afford to allow the student loan initiative to be undermined by administrative inefficiencies, regulatory gaps, or deliberate abuse of process. We are particularly concerned by reports suggesting that certain institutions and stakeholders may have colluded to delay or conceal disbursements.
The credibility of the programme, and the trust of the Nigerian people in public institutions, are both at stake and we cannot fold our hands and allow this to be swept under the carpet”, he said.
Mr. Abbas also explained what the hearing is therefore structured to achieve specific objectives.
“It is to verify the authenticity of the reported allegations of mismanagement and lack of due diligence in the loan approval and disbursement processes.
Secondly, to identify any structural weaknesses and administrative flaws that may exist within relevant agencies, regulators, participating institutions and individual actors.
Thirdly, to recommend corrective actions, including appropriate sanctions for any organization or individual found to have acted in breach of the law or the guidelines governing the programme”, he noted.
The Chairman of the Committee, Mr. Ifeoluwa Ehindero, said that the student loan initiative has rekindled hope for thousands of Nigerian families, with tangible results already being recorded.
As of June 30, 2025, Ehindero said ₦73.1 billion had been disbursed to 366,247 student beneficiaries across federal and state tertiary institutions. Of this amount, ₦38.26 billion was allocated for tuition fees and ₦34.85 billion for upkeep allowances, covering over 206 institutions.
He credited Speaker Abbas for his leadership and commitment to transparency, which enabled the Joint Committee to create an impartial platform for accountability and reform.
“We are not out to witch-hunt anyone,” Ehindero said. “Our objective is to ensure prudent accountability, improve the disbursement process, and add value to all stakeholders.”
In his submission, the Managing Director of NELFUND, Mr. Akintunde Sawyer, said that the Fund has received over 650,000 registrations and processes about 2,000 applications daily.
He explained that all applications go through a verification process, and funds for successful applicants are paid directly to their respective institutions.
The hearing, jointly conducted by the House Committees on Public Accounts and Students Loans, seeks to investigate reports of delayed disbursements, lack of transparency, and possible collusion among key stakeholders.
The House Committees are expected to hold further sessions to hear from key institutions, regulators, and affected students as they work toward restoring public confidence in the programme.
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