The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has uncovered the diversion of N71.2 billion from the student loan fund. Of the N100 billion released by the Federal Government for student loans, only N28.8 billion was actually disbursed to various tertiary institutions.
Demola Bakare, ICPC spokesperson revealed this during a media briefing in Abuja. He stated that preliminary investigations indicate that the missing funds were diverted by the management of several universities entrusted with the money.
In response to the findings, senior officials from the Central Bank of Nigeria, along with the CEO and Executive Director of the Nigeria Education Loan Fund (NELFUND), were summoned to provide documentation and clarify their roles in the matter.
Earlier, Lanre Issa-Onilu, Director-General of the National Orientation Agency, had raised concerns about deliberate attempts by universities to undermine the federal government’s student loan initiative. He alleged that no fewer than 51 tertiary institutions were involved in illegal deductions and exploitative practices related to the NELFUND scheme, urging anti-corruption agencies to act swiftly.
Following these allegations, the ICPC activated its Chairman’s Special Task Force to investigate. Letters of inquiry and invitations were sent to key stakeholders, including the Director-General of the Budget Office, the Accountant General of the Federation, and officials at the Central Bank.
According to Bakare, the investigation revealed significant gaps in financial documentation. Although N100 billion was allocated to student loans, only N28.8 billion reached the intended recipients. Further investigation into NELFUND’s records showed it had received a total of N203.8 billion as of March 19, 2024. This included N10 billion from the Federation Allocation Account Committee, N50 billion from the Economic and Financial Crimes Commission (EFCC), and two separate tranches of N71.9 billion from the Tertiary Education Trust Fund (TETFund).
The ICPC analyzed submitted documents and conducted interviews with involved parties. It found that, so far, over N44.2 billion had been disbursed to 299 institutions, benefiting approximately 293,178 students. However, the commission noted inconsistencies and discrepancies in the loan disbursement process.
Bakare confirmed that the investigation has now expanded to include the 299 institutions that received funds as well as individual student beneficiaries. He assured the public that the ICPC will continue to provide updates as the probe progresses, stating, “Comprehensive investigations into the alleged discrepancies surrounding the disbursement of student loans under the Nigeria Education Loan Fund have commenced.”
