Following the clarification by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) about the discrepancies in the disbursement of student loans, the Nigeria Education Loan Fund (NELFUND) has stated that it remains open for scrutiny and also affirmed commitment to transparency and accountability.
The Ministry of Education in a statement from the Director of Press and Public Relations however, announced in a statement that an urgent meeting had been scheduled for May 6, 2025, with the vice-chancellors of the affected universities and the Managing Director of NELFUND.
This action follows a recent media report alleging that no fewer than 51 tertiary institutions were involved in illegal deductions and exploitation related to the NELFUND scheme.
However, NELFUND said, yesterday, it was alarmed by the recent surge of what it described as inaccurate, misleading and dangerously speculative reports circulating in the public space regarding the administration of the student loan scheme.
Meanwhile, human rights lawyer and activist, Deji Adeyanju, urged ICPC to stop acting powerless against looters in power and arrest government officials behind the reportedly missing N71.2 billion.
The institutions allegedly made unauthorised deductions ranging from N3,500 to N30,000 from each student’s institutional fees received through the loan fund.
Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving a whopping N71.2 billion unaccounted for.
ICPC confirmed that its chairman’s Special Task Force immediately swung into action upon receiving the report.
It however, last night, stated that no discrepancies in the student loan disbursements have been established.
A statement issued on Thursday by Demola Bakare, ICPC spokesperson, said the absence of “not” in the agency’s earlier statement created an impression of alleged discrepancies in the disbursement of the loans.
The ICPC confirmed that a clear case of discrepancies has not been established in the administration of the student loan scheme and announced that its investigation will now extend to beneficiary institutions and individual student recipients.
Letters of investigation and invitations were dispatched to key stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation and senior officials of the Central Bank of Nigeria (CBN).
Also, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.
According to the commission, the responses received were critically analysed, and those concerned were interviewed.
THE ministry’s statement reads: “The Federal Ministry of Education has received with deep concern a report alleging some Nigerian universities to have made unauthorised deductions from funds disbursed under the NELFUND scheme.
“The Minister, Dr Olatunji Alausa, described the allegations as ‘very disturbing and extremely concerning’, emphasising that any unauthorised deduction from student loans not only breaches financial ethics but also undermines the very foundation upon which NELFUND was established. He stated that if proven true, such actions would constitute a gross violation of public trust and a betrayal of the government’s commitment to equitable access to education.”
He assured Nigerians that the matter would not be swept under the carpet, as anyone found culpable would face appropriate sanctions.
The ministry is convening an urgent meeting on May 6, 2025, with the vice-chancellors of the affected universities and the Managing Director of NELFund. The meeting will aim at thoroughly investigating the matter, ensuring accountability and reaffirming the ministry’s zero-tolerance for financial malpractice in the education sector.
NELFUND Director of Strategic Communications, Oseyemi Oluwatuyi, said the reports, which suggested misappropriation and mismanagement of funds, were “entirely false, grossly irresponsible and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians.”
He added: “This is a coordinated distortion of facts that undermines public trust, weaponises misinformation and threatens the credibility of a national intervention still in its infancy.
“The figures and funding amounts being misrepresented in the public are drawn from entirely different education financing interventions predating NELFUND’s operational commencement. They are not relevant to the current student loan scheme and should not be falsely attributed to this institution.”
REACTING to the development, yesterday, in Abuja, Adeyanju expressed deep disappointment by the recent revelations in the disbursement of student loans.
He noted: “At a time millions of Nigerian students struggle to afford quality education, the alleged mismanagement of such a critical fund is not only unacceptable but also a gross betrayal of public trust and the hopes of young people across the country.
“I commend ICPC for swiftly launching an investigation into this matter.”
The steps taken so far must continue until the truth is fully uncovered. I urge the commission to leave no stone unturned in identifying all individuals or institutions involved in this shameful act.”
Calling for the prosecution of those found culpable, he added: “It is only through decisive action and justice that we can restore public confidence in the student loan scheme and ensure such a disgraceful breach never happens again.”
