The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a massive investigation into the sharp practices by heads of institutions in the disbursement of loans by Nigerian Education Loan Fund (NELFUND) to 293,178 students in 299 institutions in the country.
The ICPC has also resolved to extend its investigation to the beneficiary institutions and students in order to establish a case of corruption and discrepancies in student loan disbursement by the heads of the institutions.
The Special Task Force of the ICPC, disclosed the startling findings in its interim investigation report over the matter, while stating efforts to establish the actual amount released by NELFUND and the amount disbursed to the benefiting students by the heads of the institutions nationwide.
The ICPC is also beaming its searchlight on the alleged fixing of the students loans in fixed deposits in banks by the heads of the institutions and their refusal to disclose payment of the students’ school fees by NELFUND while harassing them to pay what the Federal Government has already paid for.
Controversy is brewing over the alleged diversion and deductions of the students’ loans by 51 institutions, while the development has generated concerns among the stakeholders.
A discrepancy has been discovered in the disbursement of student loans by NELFUND. The Federal Government has allegedly released about N100billion for the students loan scheme ,but only N28.8 billion was reportedly disbursed to the students, leaving a balance of N71.2 billion unaccounted for by the institutions.
But investigations by the ICPC, revealed that the total money received by NELFUND as at March 19, 2023,is about N203.8billion, while the total amount disbursed to institutions by the agency from inception to date is about N44. 3billion just as the balance of about N159.5billion is with the Central Bank of Nigeria (CBN).
A source at the ICPC said,“I can tell you authoritatively that we have commenced investigations into the diversions and deductions of the the students loans by the heads of institutions involved in the matter.
“We have sent letters of investigation activities/invitation to the Director General, Budget Office Abuja, Accountant General of the Federation to release the Director Budget Office of the Federation to clarify certain issues over the disbursement.
“We also extended the letter of invitation to the Chief Executive Officer and the Executive Director NELFUND and also the Director Banking Services Central Bank of Nigeria, Abuja, asking them to furnish relevant documents that will assist the Commission in its investigation.”
On the progress report over the investigation, the source further said, “ We have received responses from the above mentioned personalities and analysed them. Other
personalities involved were interviewed and relevant informations that will assist the investigation were retrieved from them
“I can also inform you that we sent letters of investigation activities/invitation to the Governor of Central Bank, informing the Director Banking Services, Abuja and they reported and volunteered statement and also submitted some relevant documents which aided the Commission in the investigation.”
The source further disclosed that none of the affected heads of institutions would go scot free, saying that the ICPC would recover the funds from them and prosecute them accordingly
“ Investigation is ongoing and further development will be communicated in due course. But I can assure you that none of the affected heads of the affected institutions will go scot free. The ICPC will recover the money from them and prosecute them without further delay.”
Meanwhile,NELFUND has expressed concern over what it describes as a “coordinated distortion of facts” regarding the administration of the student loan scheme, following widespread media reports alleging mismanagement and diversion of funds.
In a statement yesterday ,the Fund’s Director of Strategic Communications, Oseyemi Oluwatuyi, said the reports making the rounds,including suggestions of misappropriated funds,”were entirely false, grossly irresponsible, and deeply damaging to an institution established to provide financial relief to Nigerian students.”
Oluwatuyi, however, maintained that the funds in question predate NELFUND and are not connected to the ongoing fully digital loan scheme, which only began disbursement recently.
“The figures currently being misrepresented in the public space are drawn from entirely different education financing interventions that predate NELFUND’s operational commencement,” the statement said.
Clarifying its operations, NELFUND said that no funds have been mismanaged, and that all institutional fees are paid directly to verified educational institutions, while upkeep allowances go to the verified bank accounts of eligible students.
The Fund also stressed that it operates a zero-human interface, fully automated loan system, adding that every disbursement is digitally tracked, time-stamped, and verifiable.
“Our commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering. We have complied fully with every request for information,” Oluwatuyi added.
The response comes amid growing demand for student loans. According to NELFUND, over 500,000 applications have been received since the loan scheme’s launch, further increasing public interest and scrutiny.
As the fund braces for greater accountability challenges, it reiterated its call for accurate and responsible reporting, warning that “weaponised misinformation” could jeopardize public trust in a Programme critical to expanding access to tertiary education in Nigeria.