Reps Launch Probe into ₦73bn Student Loan Disbursement, Vow to Expose Irregularities

The House of Representatives on Thursday commenced a formal investigation into alleged fund diversions, unethical practices, and non-compliance in the management of the federal student loan scheme, pledging to expose anyone found culpable.

The probe, which began with a public hearing, is being conducted by the House Committee on Student Loans following widespread reports of delayed disbursements, lack of transparency, and suspected collusion among stakeholders involved in the administration of the scheme.

Speaker of the House, Tajudeen Abbas, in his opening remarks, stressed the importance of safeguarding the credibility of the programme, which he described as a key component of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

“The credibility of the programme and the trust of the Nigerian people in public institutions are at stake. We cannot fold our arms and allow this to be swept under the carpet,” Abbas declared.

He reiterated that the aim of the probe is not to witch-hunt but to ensure proper oversight and accountability in the use of public funds meant to support students’ access to higher education.

“This House is not on a mission to witch-hunt anyone but to guarantee that every kobo allocated to support Nigerian students is used judiciously and transparently,” the Speaker emphasized.

Citing Sections 88 and 89 of the 1999 Constitution (as amended), Abbas noted that the National Assembly has the legal authority to investigate any agency or official responsible for executing federal laws, including the Student Loans (Access to Higher Education) Act, 2024.

According to the Speaker, the Nigerian Education Loan Fund (NELFUND), which oversees the disbursement of loans, had processed over 600,000 applications and disbursed over ₦73 billion to students across various tertiary institutions in the country.

“This hearing is structured to verify the allegations, identify institutional or administrative flaws, and recommend appropriate corrective measures, including sanctions where necessary,” he said.

Chairman of the Committee, Ifeoluwa Ehindero, echoed the Speaker’s sentiments, stating that the initiative had rekindled hope for thousands of families, but there is a need for more transparency.

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

He revealed that as of June 30, 2025, ₦73.1 billion had been disbursed to 366,247 student beneficiaries from over 206 federal and state institutions. Of that figure, ₦38.26 billion went to tuition fees while ₦34.85 billion was allocated for upkeep allowances.

Managing Director of NELFUND, Akintunde Sawyer, informed lawmakers that the agency had received over 650,000 registrations and processes approximately 2,000 applications daily. He emphasized that all approved funds are paid directly to the students’ institutions after thorough verification.

“All applications undergo a verification process before disbursement. We are committed to ensuring the system is not abused,” Sawyer said.

The House Committees are expected to hold subsequent sessions to hear from key regulators, institutions, and affected students, as the lawmakers aim to restore public confidence in the ambitious loan scheme.