By Ajibola Olaide, JKNewsMedia Reporter
THE NIGERIAN Education Loan Fund (NELFund) has strongly denied reports alleging misappropriation and mismanagement of student loan funds, amid a clarification from the Independent Corrupt Practices and Other Related Offences Commission (ICPC) that no discrepancies have been established in the disbursement process.
Tensions escalated after earlier media reports suggested a potential scandal involving NELFund, with claims that 51 tertiary institutions were exploiting the loan scheme through illegal deductions. These reports cited an ICPC statement which has since been corrected.
In response, NELFund’s Director of Strategic Communications, Oseyemi Oluwatuyi, condemned the allegations as “false, grossly irresponsible, and damaging” to the integrity of the federal student loan scheme.
She insisted that all institutional fees are paid directly to verified institutions, while students receive upkeep allowances through validated bank accounts.
“These reports circulating in the public space are based on outdated figures and previous interventions that predate our operations,” she said. “No funds have been stolen under the current student loan scheme, which launched its application portal in 2024.”
The fund maintains that its operations are backed by a fully automated, digital loan management system. According to Oluwatuyi, every disbursement is digitally tracked and time-stamped, ensuring full transparency and accountability.
Controversy grew after TheCable reported the ICPC was probing discrepancies in the allocation of funds. It had noted that of the N100 billion reportedly released by the federal government for the student loan scheme, only N28.8 billion had reached students at the time of reporting. However, the ICPC later issued a critical clarification.
Demola Bakare, spokesperson for the ICPC, acknowledged an error in the commission’s initial release, stating that a missing “NOT” in one paragraph had caused confusion.
The sentence should have read: “The ICPC confirmed that a clear case of discrepancies has NOT been established in the administration of the student loan scheme.”
Bakare added that the commission had, thus far, only verified the total amounts received and disbursed by NELFund, which reportedly received N203.8 billion by 19 March 2024 from sources including the Federation Allocation Account Committee (FAAC), the Economic and Financial Crimes Commission (EFCC), and the Tertiary Education Trust Fund (TETFund).
According to the ICPC, of this amount, N44.2 billion was disbursed to 299 institutions, supporting 293,178 students. No irregularities have yet been confirmed in these disbursements.
Nonetheless, the ICPC’s special task force is continuing its investigation. It has summoned key stakeholders for questioning, including officials from the Budget Office, the Office of the Accountant General, and the Central Bank of Nigeria, along with NELFund Managing Director, Akintunde Sawyerr.
The clarification from ICPC effectively undermines prior claims of fund diversion and corruption. It also reinforces NELFund’s assertion that the integrity of the new student loan disbursement system remains intact.
As scrutiny continues, the fund and the anti-corruption agency both appear committed to transparency in ensuring Nigeria’s student loan programme remains a viable financial lifeline for thousands of students nationwide.
