The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a comprehensive investigation into the alleged diversion of ₦71.2 billion out of ₦100 billion released for student loans under the Nigeria Education Loan Fund (NELFUND). According to preliminary findings, only ₦28.8 billion reached students in various tertiary institutions, leaving a significant portion of the funds unaccounted for.
The probe follows reports and complaints that at least 51 tertiary institutions, sometimes in collusion with banks, have been implicated in unauthorized deductions and delays in disbursing loans to eligible students. These deductions reportedly ranged from ₦3,500 to ₦30,000 per student, and in some cases, institutions failed to notify students of loan payments made in their names, demanding tuition fees despite receiving funds from NELFUND.
ICPC’s investigation has already involved invitations to key stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation, officials from the Central Bank of Nigeria, and the leadership of NELFUND, to provide documentation and explanations for the discrepancies. As of March 2023, records show NELFUND received a total of ₦203.8 billion from various sources, but only about ₦44.2 billion has been disbursed to 299 institutions, benefiting 293,178 students.
The Presidency has condemned the illegal deductions and exploitation, promising strict sanctions for culpable institutions and officials. Anti-graft agencies, including the ICPC and EFCC, are collaborating with the Ministry of Education to ensure accountability and restore the integrity of the student loan scheme.
The ICPC confirmed that a clear case of financial discrepancies has been established and announced that its investigation will now extend to beneficiary institutions and individual student recipients. Further updates are expected as the inquiry progresses.