Amid growing concerns surrounding the alleged mismanagement of the Federal Government’s student loan programme, Education Minister Dr. Tunji Alausa is set to meet today (Tuesday) with Vice-Chancellors and heads of tertiary institutions reportedly involved in the misappropriation of loan funds.

A key focus of the meeting will be the training of bursars and ICT heads from these institutions to ensure more effective administration of the scheme. In addition, the Ministry of Education will unveil a compliance tracking webpage aimed at promoting transparency and accountability in the disbursement process.

The student loan initiative has faced mounting criticism after the National Orientation Agency accused certain institutions, in collaboration with banks, of making illegal deductions from student loan payouts.

Members of the National Association of Nigerian Students (NANS) staged a protest on Monday, blocking the Lagos-Ibadan Expressway to express their outrage over alleged irregularities in the disbursement of student loans.

The protest followed revelations by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) last week, which stated that although NELFUND had disbursed N100 billion for student loans, only N71 billion could be properly accounted for in its preliminary investigation. Leading the protest, NANS Ogun Joint Campus Committee Chairman, Gabriel Abiola, criticized the lack of transparency and demanded immediate accountability regarding the funds.

NANS Ogun Joint Campus Committee Chairman, Gabriel Abiola, voiced his concerns during the protest, stating, “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.”

He further emphasized the immediate impact on students, saying, “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 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 led to a temporary disruption of vehicular movement along the Lagos-Ibadan Expressway but was eventually called off after the Ogun State Commissioner of Police, Lanre Ogunlowo, intervened and engaged the student protesters, appealing for calm.

In an official statement, the command’s spokesperson, Omolola Odutola, explained:

“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.”

In the meantime, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has initiated a comprehensive investigation into the claims of mismanagement regarding the student loan scheme. The spokesperson for the commission, Demola Bakare, confirmed that the ICPC's Special Task Force immediately began investigating the allegations upon receiving them.

According to the commission's preliminary findings, although NELFUND allocated N100 billion for student loans, only N28.8 billion was actually distributed to beneficiaries, leaving N71.2 billion unaccounted for.

There have also been reports suggesting that some institutions may have disbursed funds to students who had already graduated, further intensifying the controversy.

However, NELFUND's Managing Director and CEO, Akintunde Sawyerr, has denied claims that N71 billion is missing. 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.”