NELFund South East Investigation begins as Reps probe ₦86.3bn disbursement to ensure fairness, transparency, and legal compliance in student loan system.

NELFund South East Investigation is now underway as the House of Representatives on Wednesday launched a formal probe into the disbursement of ₦86.3 billion in student loans across federal and state tertiary institutions in the region.

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The hearing, held at the Enugu State University of Science and Technology (ESUT), was led by Prof. Paul Sunday Nnamchi, Chairman of the Joint Committee on Student Loans, Scholarships and Higher Education Financing, alongside Banking and Other Ancillary Institutions, Anti-Corruption, and University Education.

Prof. Nnamchi, who represents Enugu East/Isi-Uzo Federal Constituency, clarified that the probe is a fact-finding exercise aimed at ensuring transparency, fairness, and efficiency in the NELFund scheme.

“This is not a witch-hunt. We are here to examine compliance with legal and ethical standards and recommend actionable steps to strengthen the system,” Nnamchi stated.

He revealed that as of August 6, 2025, the Nigerian Education Loan Fund (NELFund) had disbursed ₦86.3 billion to 366,247 students in over 218 institutions, with ₦47.6 billion going toward tuition and ₦38.7 billion allocated as upkeep allowances.

The investigation will interrogate the operational procedures used by NELFund and assess whether the implementation aligns with President Bola Tinubu’s Renewed Hope Agenda in education.

Vice Chancellors from universities across the South East attended the session and voiced support for the initiative. They commended President Tinubu for launching the loan scheme, noting that it had provided financial relief for many families facing economic hardship.

Speaking on behalf of ESUT, Deputy Vice Chancellor Prof. Chike Nwoha, representing VC Prof. Aloysius-Michaels Okolie, welcomed the oversight effort.

“Your presence and this hearing signal a commitment to accountability. We hope it will further improve implementation,” Nwoha said.

However, the VCs raised concerns about the financial strain on institutions involved in administering the loans. They appealed to the Federal Government to offer support packages to help schools manage associated operational costs.

Also read: NELFUND Disburses ₦77bn in Student Loans to 396,252 Beneficiaries

As the NELFund South East Investigation continues, the House Committee is expected to submit its findings and recommendations to guide future disbursement practices and enhance transparency and effectiveness nationwide.