The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has revealed a troubling discovery within Nigeria’s student loan program. Despite the Federal Government reportedly releasing ₦100 billion to various tertiary institutions, only ₦28.8 billion was actually allocated to students, leaving a staggering ₦71.2 billion unaccounted for.
Naturenex reports that the commission disclosed this during a press briefing in Abuja on Thursday, with its spokesperson, Demola Bakare, announcing that top financial officers in the country have been summoned in connection with the missing funds.
Bakare confirmed that key stakeholders, including the Director-General of the Budget Office, the Accountant-General of the Federation, senior Central Bank of Nigeria (CBN) officials, and both the Chief Executive Officer and Executive Director of the Nigerian Education Loan Fund (NELFUND), have been called to provide crucial documents and explanations as part of an ongoing probe.
This revelation follows earlier concerns raised by the Director-General of the National Orientation Agency, Lanre Issa-Onilu, who alleged that some universities were actively undermining the Tinubu administration’s student loan initiative. Issa-Onilu claimed that “at least 51 tertiary institutions were involved in unlawful deductions and exploitation associated with the NELFUND scheme,” calling for immediate intervention from anti-corruption agencies.
Reports indicate that these schools were deducting between ₦3,500 and ₦30,000 from each student’s fees processed through the loan scheme without proper authorisation.
Addressing the situation, Bakare stated that the ICPC acted swiftly once the allegations surfaced. “The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report.”
“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 (CBN).
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.”
Preliminary findings uncovered a huge discrepancy in the disbursement records. “While the Federal Government reportedly released ₦100 billion for the scheme, only ₦28.8 billion was disbursed to students, leaving an unaccounted sum of ₦71.2 billion,” Bakare disclosed.
Further details from NELFUND’s financial records as of March 19, 2024, showed a total of ₦203.8 billion received, broken down as follows: “N10 billion was an allocation from the Federation Allocation Account Committee, ₦50 billion was from the Economic and Financial Crimes Commission, ₦71.9B was from the Tertiary Education Trust Fund, while another ₦71.9 billion was also from the same Tertiary Education Trust Fund.”
Bakare explained that after analyzing responses and interviewing involved parties, the ICPC discovered that from inception to date, a total of ₦44.2 billion had been disbursed to 299 beneficiary institutions, covering 293,178 students.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately ₦44.2 billion, with 293,178 students having benefited from the fund.”
He added that a clear pattern of financial inconsistencies has been identified within the program’s management. “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.”
“Comprehensive investigations into the alleged discrepancies surrounding the disbursement of students’ loans under the Nigeria Education Loan Fund (NELFUND) has commenced,” Bakare concluded, assuring the public that further updates would be provided as the probe continues.
