As controversy deepens over the alleged mismanagement of the Federal Government’s student loan scheme, the Minister of Education, Dr. Tunji Alausa, will today (Tuesday) meet with Vice-Chancellors and heads of tertiary institutions accused of misappropriating funds disbursed through the scheme.
Top on the agenda for the meeting is the training of bursars and Information Communication Technology heads from these institutions to ensure the smooth running of the programme.
The ministry will also launch a compliance tracking webpage to foster transparency and accountability in loan disbursement.
The student loan scheme has come under intense scrutiny following allegations by the National Orientation Agency that some institutions, in collaboration with banks, have been making fraudulent deductions from student loan disbursements.
Last week, the Independent Corrupt Practices and Other Related Offences Commission said its preliminary probe revealed that while NELFUND had released N100bn as stundents loan, N71bn is accounted for.
These allegations triggered a wave of outrage, culminating in a protest on Monday by members of the National Association of Nigerian Students, who blocked the Lagos-Ibadan Expressway.
The students, led by the NANS Ogun Joint Campus Committee Chairman, Gabriel Abiola, decried irregularities in the disbursement of the funds.
“We are demanding proper accountability in the student loan programme. The issue is affecting Nigerian students, especially students from my state. Many of our students applied for the loan, and it has been approved, but it has not been disbursed to them, and they are not allowing some of the students to write the exam,” Abiola said.
He continued, “We raised the alarm over the issue about a month ago, asking the ICPC to set up an investigative committee, and we were aware that the ICPC disclosed that out of the over N100bn disbursed, only N28bn was released to the students. We demand that the President, Bola Tinubu, gear up the ICPC and EFCC to investigate the matter, and the ICPC should release the names of the 51 institutions that they have identified so that we will know the enemies of Nigerian students.”
Abiola warned that protests would persist if authorities failed to act: “We have sent our message, and they are all aware. If they fail to yield to our demands, we will not hesitate to continue with the protest.”
The protest caused a temporary disruption to traffic before being called off following intervention by the Ogun State Commissioner of Police, Lanre Ogunlowo, who engaged with the demonstrators and appealed for calm.
A statement from the command’s spokesperson, Omolola Odutola, read, “The demonstrators barricaded the expressway, causing a temporary disruption to vehicular movement. Their primary grievances included the lack of transparency and accountability in the disbursement of the Federal Government Tertiary Education Trust Fund, meant for student loans. Protesters also decried the rising cost of tuition and called for improvements in learning conditions and facilities across tertiary institutions.”
She added that “no incidents of violence were reported during the protest,” and that the students later met with the Commissioner at the State Command Headquarters in Eleweran for further dialogue.
Meanwhile, the ICPC has launched a full-scale investigation into the allegations.
According to the commission’s spokesperson, Demola Bakare, ICPC’s Special Task Force has commenced investigations immediately upon receiving the allegations.”
Preliminary findings by the ICPC indicated that while NELFUND disbursed N100bn for student loans, only N28.8bn reached actual beneficiaries—leaving N71.2bn unaccounted for.
There have also been allegations that some institutions released funds to students who had already graduated, further fuelling the controversy.
However, the Managing Director and Chief Executive Officer of NELFUND, Akintunde Sawyerr, rejected claims that N71bn was missing.
Speaking at a stakeholders’ workshop on system automation and loan processing in Abuja on Monday, he stated: “We have to adhere to our processes. If a person has already paid their fees in their final year, and we’ve paid their tuition, it is the obligation of that individual to go to school. I know my fees are now being paid by an officer. But to complain that you’ve already graduated and you’ve left—the fact of the matter is, people applied in their final year. You have to go through a process that allows us to make sure that they are the ones who are actually applying and who actually need it. Again, let me just point out this thing about delays.”
He described the ongoing meeting and technical workshop as “a critical milestone in the collective journey to deliver a fully digitised, transparent, and student-centric financial aid system for Nigerian higher education.”
Also speaking at the event, Chairman of the House Committee on Students Loan, Scholarships, and Higher Education Financing, Ifeoluwa Ehindero, emphasised the need to modernise fund disbursement:
“This is essential for the success of the initiative and will go a long way in ensuring that our students benefit in a timely and accountable manner. As members of the House of Representatives Committee on Student Loans, we have been working tirelessly to ensure that the legislative framework supports and facilitates these reforms. However, legislative efforts alone are not enough.
“We need your expertise, your feedback, and your active participation to make sure that we have a system that works for everyone from the students applying for loans to the institutions managing the funds. This workshop is not just a platform for training but also an opportunity for collaboration.”
Earlier, NELFUND’s Executive Director of Operations, Mr. Iyal Mustapha, disclosed that over 576,058 students had registered for the loan, with applications totaling N170.4bn. He urged institutions in the South-East and South-South to step up awareness campaigns to ensure eligible students apply in time.
Also speaking, Lawal Mohammed Faruk, a representative of the National Universities Commission, described the scheme as “one of the best policies of the Federal Government,” adding, “Our dream is to see NELFUND one day onboard all the students in the country, whether public or private.”
However, in a statement last Thursday, NELFUND’s Director of Strategic Communications, Oseyemi Oluwatuyi, condemned what he called “inaccurate, misleading, and dangerously speculative reports” on the scheme.
He said, “The reports, which suggested misappropriation and mismanagement of funds, are entirely false, grossly irresponsible, and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians.”
The student loan controversy continues to unfold even as the Education Ministry convenes key stakeholders today in a bid to restore public trust and improve the scheme’s delivery.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
