The Independent Corrupt Practices and Other Related Offences Commission has commenced a comprehensive investigation into alleged discrepancies surrounding the disbursement of student loans under the Nigeria Education Loan Fund.
The commission said its preliminary findings revealed that while the Federal Government released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving N71.2b unaccounted for.
Worried by the development, the National Association of Nigerian Students vowed to protest the alleged discrepancy.
The National Orientation Agency had alleged that certain schools, conniving with some banks, delayed payments to students who qualified for loans so they could make money off the situation.
This followed a media report which alleged that some institutions made unauthorised deductions ranging from N3,500 to N30,000 from students’ fees received from the loan fund.
In a statement on Thursday by the ICPC spokesperson, Demola Bakare, the commission stated that its Special Task Force immediately commenced investigations upon receiving the allegations.
The statement read, “The ICPC has commenced a comprehensive investigation into alleged discrepancies surrounding the disbursement of student loans under the NELFUND.
“This action follows a recent media report alleging that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme.
“These institutions were alleged to have made unauthorised deductions ranging from N3,500 to N30,000 from each student’s institutional fees received through the loan fund.
“Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving an unaccounted sum of N71.2 billion.
“The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report.”
Bakare noted that in the course of further investigations, the ICPC discovered that a total of N203.8 billion was received by NELFUND.
Out of this amount, Bakare said N44,200,933,649.00 had been disbursed, hinting that approximately N159.6b was yet to be distributed.
However, the ICPC did not explicitly state that this amount is missing.
When contacted for clarification, Bakare promised to revert, but he has yet to do so as of the time of filing the report.
Nonetheless, in the statement, Bakare confirmed that a clear case of discrepancies had been established in the administration of the student loan scheme.
Bakare said, “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.
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.
According to the Commission, the responses received were critically analysed, and interviews were conducted with the concerned individuals.
“According to the ICPC, its strength of investigation revealed that the total money received by NELFUND as of March 19, 2023, was N203.8 billion. The breakdown showed that N10b was an allocation from the Federation Allocation Account Committee, N50b was from the Economic and Financial Crimes Commission, N71.9b was from the Tertiary Education Trust Fund, while another N71.9b was also from the same Tertiary Education Trust Fund.
“ICPC, however, found that the total amount disbursed to institutions from inception to date is about N44,200,933,649.00, while a total of 299 institutions have benefited from the funds released. To date, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2b, with 293,178 students having benefited from the fund.
“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 statement added.
On the heels of the report, the NANS on Thursday threatened to mobilise students for a protest nationwide should the government fail to recover the alleged missing funds.
The National Public Relations Officer of the association, Samson Adeyemi, said this in an interview with The PUNCH.
“The revelation by the ICPC regarding the staggering N71.2b unaccounted for in the student loan scheme is both alarming and unacceptable. It represents not only a betrayal of public trust but a direct attack on the future of Nigerian students who depend on these funds for their education and survival.
“We at NANS are deeply concerned about the alleged collusion between institutions and financial bodies to exploit students through unauthorised deductions and delayed disbursements. Such actions are not just administrative lapses; they are acts of sabotage against Nigerian youth.
“We commend the ICPC for launching an investigation, but we demand swift, transparent, and public action. Every kobo meant for student welfare must be accounted for, and those found guilty — whether institutions, banks, or government officials — must face the full weight of the law.
“NANS will not hesitate to mobilise nationwide action if concrete steps are not taken to recover the missing funds and reform the administration of student loans to prioritise the welfare of Nigerian students,” he said.
Meanwhile, the Minister of Education, Dr. Tunji Alausa, will on May 6, 2025, meet with vice-chancellors and other heads of institutions over the alleged fraudulent activities surrounding the student loan scheme.
The Director of Press at the Federal Ministry of Education, Folasade Boriowo, who confirmed this, said, “The ministry is convening an urgent meeting on May 6, 2025, with the vice chancellors of the affected universities and the Managing Director of NELFund. The meeting will aim to thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.”
Commenting on the reported discrepancies in the loan disbursement, the Academic Staff Union of Universities said its criticism of the NELFUND has been confirmed.
ASUU’s National President, Prof. Victor Osodeke, said, “Well, we are not surprised. We warned about this from the beginning. Now you can see it. You can see the heavy corruption in just how many years. What will happen in future?
“This is why we said it cannot work. It is another opportunity to steal public funds. We have been vindicated. When we raise issues, the Nigerian public doesn’t listen to us. You can see what we are talking about. We have been vindicated.” (Punch)
