The Independent Corrupt Practices and Other Related Offences Commission (ICPC) revealed on Thursday that only N28.8 billion was disbursed to students in various tertiary institutions, despite the Federal Government releasing N100 billion to the schools.
The commission stated that preliminary investigations showed that a significant N71.2 billion was diverted by university managements who were responsible for handling the funds.
Demola Bakare, the commission’s spokesman, explained that key stakeholders, including the Director-General of the Budget Office and the Accountant-General of the Federation, have been invited to provide clarification. Senior officials from the Central Bank of Nigeria and the Chief Executive Officer and Executive Director of NELFUND were also invited to offer relevant documentation and explanations regarding the matter.
Daily Trust reported that two weeks ago, the Director-General of the National Orientation Agency, Lanre Issa-Onilu, had raised concerns that some universities were attempting to undermine the Tinubu-led government’s student loan scheme. Issa-Onilu claimed that at least 51 tertiary institutions were involved in unauthorized deductions and exploitation related to the NELFUND scheme, urging anti-graft agencies to investigate and stop the fraud.
In addition, media reports have indicated that these institutions made illegal deductions, ranging from N3,500 to N30,000, from students’ fees collected through the loan fund.
Providing an update on the situation, Bakare stated that the ICPC had launched an investigation after the concerns were raised. He emphasized that those found responsible for the mismanagement of the funds would face legal action.
“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,” Bakare explained. “Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.”
Preliminary findings indicated significant discrepancies in the financial records of the disbursement process. The government had reportedly allocated N100 billion to the scheme, but only N28.8 billion was distributed to students, leaving a substantial N71.2 billion unaccounted for.
Breaking down the NELFUND records, Bakare stated that the total amount received by NELFUND as of March 19, 2024, was N203.8 billion. This included N10 billion from the Federation Allocation Account Committee, N50 billion from the Economic and Financial Crimes Commission, and two separate allocations of N71.9 billion each from the Tertiary Education Trust Fund.
Bakare further revealed that the total amount disbursed to institutions up to that point was N44,200,933,649, benefiting 299 institutions. He added that 293,178 students had received financial support from the loan fund.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students having benefited from the fund,” Bakare said. “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.”
The commission intends to continue providing updates as the investigation progresses. Bakare also noted that the investigation into the alleged discrepancies surrounding the NELFUND student loan scheme had officially begun.
“Comprehensive investigations into the alleged discrepancies surrounding the disbursement of students’ loans under the Nigeria Education Loan Fund (NELFUND) have commenced,” he concluded.
