By Fresh Facts Magazine Staff Writer
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has reversed its earlier assertion that over N71 billion meant for student loans under the Nigeria Education Loan Fund (NELFUND) was unaccounted for, citing a crucial error in its initial press statement.
On Thursday, ICPC’s Director of Public Enlightenment and Education, Demola Bakare, clarified that a missing word in the earlier release gave the false impression that financial discrepancies had already been established in the disbursement of the student loans. “Unintentionally, the word ‘NOT’ was omitted in the second to last paragraph of our statement,” Bakare said, adding that the omission misled the public to believe the commission had confirmed misappropriation.
According to the revised statement, what has been verified so far is the total sum received and disbursed by NELFUND, not the existence of any diversion or financial irregularities. “The impression of diversion and the issue of discrepancies do not exist at this stage,” Bakare noted. “Investigations must now focus on receiving institutions and individual beneficiaries before any conclusions can be drawn.”
The ICPC emphasized that its probe was prompted by formal petitions from both NELFUND and the National Orientation Agency (NOA). Initial findings had suggested major gaps between funds released and those disbursed. Specifically, it was alleged that while the federal government approved N100 billion for the student loan programme, only N28.8 billion was distributed to beneficiaries, sparking concerns about the whereabouts of the balance.
However, updated financial records reviewed by the commission as of March 19, 2023, indicated that NELFUND actually received a total of N203.8 billion. This included N10 billion from the Federation Allocation Account Committee (FAAC), N50 billion from the Economic and Financial Crimes Commission (EFCC), and two separate tranches of N71.9 billion each from the Tertiary Education Trust Fund (TETFund). From this amount, N44.2 billion was disbursed to 293,178 students across 299 tertiary institutions.
Despite this, allegations of corruption and malpractice have continued to surface.
According to reports by Punch newspaper, at least 51 tertiary institutions were found to have illegally deducted between N3,500 and N30,000 from loan disbursements meant for students. These unauthorized charges and withholding of funds have fueled suspicions of widespread collusion between institutions and banks.
The National Association of Nigerian Students (NANS) has taken a firm stand. Its Vice President for Inter-Campus and Gender Affairs, Akinbodunse Felicia, accused some institutions of diverting loan funds and failing to inform students about disbursements made in their names. “Students were still asked to pay fees out-of-pocket even when funds had been released for them,” she said.
NANS commended NELFUND’s Managing Director, Akintunde Sawyerr, for acknowledging the corruption risks and announced plans to stage nationwide protests on April 24 to urge presidential intervention.
In response to the growing concerns, the House of Representatives Committee on NELFUND has pledged to intensify oversight. NANS President Olusola Oladoja confirmed that the committee would collaborate with ICPC to ensure greater transparency and accountability in the loan disbursement process.
The NOA, through its Deputy Director of Communications, Paul Odenyi, also revealed that its independent investigations had uncovered multiple cases of institutions failing to credit students’ accounts despite receiving funds. Several banks are also being scrutinized for suspected complicity.
NELFUND was established by the Student Loans (Access to Higher Education) Act, 2024, which repealed the earlier 2023 Act. The fund is designed to provide financial assistance to Nigerians seeking higher education, vocational training, or skills development. The loans are meant to cover tuition fees, other academic expenses, and possibly living costs.
While the ICPC has clarified that no definitive case of financial mismanagement has been established at this stage, it affirmed that investigations are ongoing and will now target tertiary institutions and individual beneficiaries.
For now, the focus shifts to ensuring that the student loan scheme fulfills its intended purpose—empowering Nigerian students through accessible and accountable funding.
