The House of Representatives has reopened probe into the operations of the Nigerian Education Loan Fund (NELFUND), after fresh allegations of irregularities in the disbursement of student loans across tertiary institutions.
Prof Paul Sunday Nnamchi, the Chairman of the Joint Committee on Student Loans, Scholarships and Higher Education Financing, Banking and Other Ancillary Institutions, Anti-Corruption, and University Education, said the committee’s assignment is to critically examine alleged breaches in the disbursement process and ensure accountability.
Nnamchi, who represents Enugu East/Isi-Uzo Federal Constituency, spoke during the South East Zonal Investigative Hearing at the Enugu State University of Science and Technology (ESUT).
He noted that the committee would interrogate operational procedures and compliance with legal and ethical standards guiding the loan scheme.
“Once again, I must commend NELFund and Nigerian students for embracing this transformative journey of Mr. President’s Renewed Hope Agenda in the education sector.
“As of Wednesday, 6th August 2025, NELFund has disbursed ₦86.3 billion in loans to 366,247 student beneficiaries across federal and state tertiary institutions, with ₦47.6 billion allocated to tuition fees and ₦38.7 billion as upkeep allowances to students in over 218 beneficiary institutions,” he said.
The renewed investigation follows multiple reports of abuse. On September 4, a report revealed that at Usmanu Danfodiyo University, Sokoto, students accused the school management of deliberately manipulating their online portals to embezzle NELFUND loan refunds.
Although the loan fund had released approved payments to the university on behalf of applicants, many students claimed their refunds were siphoned through what they described as a fraudulent portal adjustment scheme.
