The Nigerian government is moving to address the deepening controversy surrounding its student loan scheme, with Education Minister Dr. Tunji Alausa set to meet today (Tuesday) with heads of tertiary institutions accused of misusing funds.
According to the Punch, the meeting will focus on training bursars and ICT officers to ensure transparency in loan processing.
Additionally, a new online portal for compliance monitoring will be introduced by the Ministry of Education to enhance accountability.
The student loan initiative has recently drawn public criticism after the National Orientation Agency alleged that some universities, in collaboration with financial institutions, were fraudulently deducting from loan payouts.
Last week, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) revealed that although NELFUND disbursed N100 billion for the scheme, only N28.8 billion reached students, raising concerns about the whereabouts of the remaining N71.2 billion.
The revelation sparked protests led by the National Association of Nigerian Students (NANS), whose members blocked the Lagos-Ibadan Expressway on Monday.
Meanwhile, NANS Ogun JCC Chairman Gabriel Abiola, alleged that students are being denied access to funds and barred from exams despite approved loan applications.
Abiola demanded the public release of the names of institutions implicated by the ICPC, warning that protests would persist unless decisive action is taken.
“We want transparency. The President must empower the ICPC and EFCC to conduct a thorough investigation,” he insisted.
The peaceful protest, which disrupted traffic temporarily, was called off after Ogun State Commissioner of Police Lanre Ogunlowo intervened and invited student leaders for dialogue.
AFRIPOST had reported that the ICPC has launched a full investigation into the alleged financial misconduct. According to its spokesperson, Demola Bakare, the agency’s special task force is already gathering evidence.
Controversy also surrounds reports that some institutions disbursed loans to students who had already graduated.
However, NELFUND CEO Akintunde Sawyerr refuted allegations of missing funds during a stakeholders’ workshop on loan automation in Abuja.
He explained that applications from final-year students were legitimate and processed according to policy.
At the same workshop, House Committee Chairman on Student Loans, Ifeoluwa Ehindero, stressed the importance of modernising the loan process for improved efficiency and timely disbursement.
Over 576,000 students have registered for the scheme so far, with total applications amounting to N170.4 billion.
Despite criticism, NELFUND maintains that the programme remains one of the Federal Government’s most promising education initiatives.
Its spokesperson, Oseyemi Oluwatuyi, recently condemned what he termed “false and harmful” reports aimed at discrediting the scheme.
