The House of Representatives has opened a sweeping investigation into allegations of fund diversion, non-compliance, and unethical practices within the operations of the Nigerian Education Loan Fund (NELFUND), a flagship initiative designed to expand access to higher education for Nigerian students.
At the opening of the probe on Tuesday, Speaker Tajudeen Abbas decried reports of administrative lapses and irregularities that threaten the credibility and effectiveness of the student loan scheme.
“This House cannot afford to allow the student loan initiative to be undermined by administrative inefficiencies, regulatory gaps, or deliberate abuse of process,” Abbas said in a strongly worded address.
He reminded stakeholders that the 10th Assembly is committed to integrity, transparency, and good governance, and would deploy its full constitutional powers to enforce accountability. Citing Sections 88 and 89 of the 1999 Constitution (as amended), Abbas said the legislature is well within its authority to investigate any government agency or authority charged with implementing laws enacted by the National Assembly.
“This hearing reaffirms our legislative oversight function to detect institutional weaknesses, correct misapplications of the law, and hold erring institutions accountable,” he added.
The Nigerian Education Loan Fund, established through the Student Loans (Access to Higher Education) Act, 2024, was introduced as a key plank of the Renewed Hope Agenda of President Bola Tinubu’s administration. Since its rollout, over 600,000 students have applied for loans, and more than ₦73 billion has reportedly been disbursed.
While the programme was celebrated as a landmark social intervention aimed at reducing financial barriers to higher education, recent allegations of corruption and collusion by unnamed institutions and officials have cast a shadow over its success.
Speaker Abbas expressed deep concern over reports suggesting that certain stakeholders may have colluded to delay or conceal disbursements, potentially leaving thousands of eligible students stranded in their educational pursuits.
The House has vowed to thoroughly examine the loan disbursement process, assess the role of involved institutions, and recommend reforms where needed. Lawmakers are expected to summon NELFUND officials, representatives from higher institutions, relevant ministries, and possibly student bodies to testify in the coming weeks.
Abbas urged full cooperation from all involved agencies and stressed that the probe is not intended to witch-hunt, but to protect the credibility and future of an initiative that holds life-changing potential for Nigeria’s youth.
“The NELFUND programme is one of the most precious legacies of this administration. We will not allow it to fail,” the Speaker concluded.
As the investigation begins, many Nigerians — particularly students and parents — await its outcome with hope that it will lead to a more transparent, inclusive, and impactful student loan scheme.