The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has raised alarm over the alleged diversion of N71.2 billion from funds meant for student loans under the Nigeria Education Loan Fund (NELFUND).
According to the commission, only N28.8 billion out of the N100 billion released by the Federal Government was disbursed to students across various tertiary institutions.
The remaining funds, it said, may have been diverted by university administrators.
“The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report,” ICPC spokesman Demola Bakare told journalists in Abuja.
“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 from the Central Bank of Nigeria.
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.”
Bakare disclosed that the ICPC’s preliminary investigation uncovered significant gaps in the financial records of the disbursement process.
“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 an unaccounted sum of N71.2 billion.”
Further breakdown of NELFUND’s financial records, according to the ICPC, revealed that as of March 19, 2024, a total of N203.8 billion had been received by the fund.
“The breakdown showed that N10 Billion was an allocation from the Federation Allocation Account Committee, N50 billion was from the Economic and Financial Crimes Commission, N71.9B was from the Tertiary Education Trust Fund, while another N71.9 billion was also from the same Tertiary Education Trust Fund,” Bakare said.
He added that the commission had analyzed responses and conducted interviews with relevant parties.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students having benefited from the fund.
“The ICPC confirmed that a clear case of discrepancies has 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.”
Bakare emphasised that those found culpable will be brought to justice and assured that updates would be provided as the investigation continues.
“Comprehensive investigations into the alleged discrepancies surrounding the disbursement of students’ loans under the Nigeria Education Loan Fund (NELFUND) has commenced,” he stated.
Two weeks earlier, Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu, warned of alleged sabotage by some universities, claiming efforts were being made to derail the Tinubu administration’s student loan initiative.
Issa-Onilu alleged that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme, while calling on the anti-graft agencies to unravel the fraud and halt it.
Media reports also claimed that unauthorized deductions ranging from N3,500 to N30,000 were made from student loan disbursements by various institutions.
