Student Loan Scandal: FG Probes Missing Funds as Protests Paralyse Major Highway
Written by Agboola Oluwafemi on May 6, 2025
Amid mounting allegations of mismanagement in the student loan scheme, the Minister of Education, Dr. Tunji Alausa, is scheduled to meet today with Vice-Chancellors and heads of tertiary institutions linked to the controversy. The meeting will focus on training institutional bursars and ICT officials to ensure compliance and transparency in loan disbursement. A compliance-tracking website will also be launched.
The student loan programme has come under scrutiny following claims of fraudulent deductions and irregular fund releases. According to preliminary findings by the Independent Corrupt Practices and Other Related Offences Commission, while NELFUND disbursed ₦100 billion for student loans, only ₦28.8 billion reached beneficiaries, leaving ₦71.2 billion unaccounted for. There are also reports of disbursements to students who had already graduated.
The crisis sparked protests on Monday by the National Association of Nigerian Students, who blocked the Lagos-Ibadan Expressway, demanding accountability. NANS Ogun Chairman, Gabriel Abiola, called for a full investigation by anti-corruption agencies and urged the release of names of implicated institutions. The protest ended peacefully after intervention by the Ogun State Commissioner of Police, Lanre Ogunlowo.
While the ICPC has launched a full investigation, NELFUND CEO Akintunde Sawyerr refuted claims of missing funds, stating that delays were due to procedural safeguards. He reiterated that the programme is designed to be transparent and student-focused.
At a stakeholders’ workshop in Abuja, lawmakers and education officials underscored the need to digitise and modernise the loan process. House Committee Chairman on Student Loans, Ifeoluwa Ehindero, stressed collaboration between institutions and government to ensure timely, accountable disbursement.
Over 576,000 students have registered for the scheme, with applications exceeding ₦170 billion. NELFUND urged more awareness in the South-East and South-South regions. Meanwhile, the agency dismissed recent media reports of fraud as “inaccurate and damaging.”
As the Ministry seeks to restore public trust, today’s meeting is seen as a crucial step in resolving the crisis and reforming the loan system.
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Author: Agboola Oluwafemi
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