Reps won’t allow abuse of student loan scheme, says Abbas

Tajudeen Abbas, speaker of the house of representatives , says the green chamber will not allow the student loan scheme to be undermined or abused.

Abbas spoke on Thursday during an investigative hearing on the alleged unethical practices in the disbursement and management of student loans.

The hearing was conducted by the joint committee on student loans, tertiary education and services, and banking and currency.

The scheme has been enmeshed in controversy in recent weeks, with the National Orientation Agency (NOA) alleging collusion between some tertiary and financial institutions to delay, divert, and conceal the disbursement of funds meant for beneficiaries.

During the inaugural session of the investigative hearing, Abbas, represented by Ali Madaki, deputy minority leader, said the “troubling” reports about alleged diversions, non-compliance, and unethical practices in the disbursement process threatens to derail the intervention programme.

“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.

“We are particularly concerned by reports suggesting that certain institutions and stakeholders may have colluded to delay or conceal disbursements.

“The credibility of the programme, and the trust of the Nigerian people in public institutions, are both at stake, and we cannot fold our hands and allow this to be swept under the carpet.”

Abbas said the probe will ascertain the veracity of allegations, identify any structural weaknesses and administrative flaws, and recommend corrective actions, including appropriate sanctions for any organisation or individual who has violated the scheme’s guidelines.

Abbas said the investigation is not a “witch-hunt”, but to ensure funds allocated to the programme are used judiciously and transparently.

“We must reinforce public confidence in the student loan system as a viable and dependable mechanism for educational advancement. We must protect the spirit of equity and access which underpins the establishment of NELFUND,” he said

In his remarks, Ifeoluwa Ehindero, chair of the house committee on student loans, said NELFUND had disbursed over N73 billion in loans as of June 30, with 366,247 student beneficiaries across federal and state tertiary institutions.

Ehindero said lawmakers must work to ensure President Bola Tinubu’s renewed hope agenda on education revitalises the sector by focusing on quality and inclusivity.