The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a comprehensive investigation into widespread irregularities in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND).Travel guides
This move follows alarming media reports alleging that at least 51 tertiary institutions made unauthorised deductions from institutional fees paid through the loan scheme. Students reportedly faced illegal charges ranging from ₦3,500 to ₦30,000.
In a statement released on Thursday, the ICPC disclosed that its preliminary findings uncovered significant discrepancies in financial records related to the student loan disbursement. Although the Federal Government reportedly allocated ₦100 billion to the initiative, only ₦28.8 billion has been traced directly to student beneficiaries — leaving a staggering ₦71.2 billion unaccounted for.
The Commission activated its Chairman’s Special Task Force to probe the matter. Letters of investigation and formal invitations were sent to top government stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation, and senior officials of the Central Bank of Nigeria (CBN).Travel guides
Officials of NELFUND — including its Chief Executive Officer and Executive Director — were also summoned to provide documents and clarify operational procedures. According to the ICPC, the documents and interviews conducted offered further insights into the fund’s financial flow.
As of March 19, 2023, NELFUND had reportedly received ₦203.8 billion, which included ₦10 billion from the Federation Allocation Account Committee (FAAC), ₦50 billion recovered by the Economic and Financial Crimes Commission (EFCC), and two tranches of ₦71.9 billion each from the Tertiary Education Trust Fund (TETFund).
However, only ₦44.2 billion has been disbursed across 299 institutions, reaching 293,178 students. The ICPC confirmed that clear patterns of mismanagement and financial discrepancies have emerged, prompting an expansion of the probe to include all 299 beneficiary institutions and individual loan recipients.
The Commission emphasised that updates will be provided as the investigation progresses.
The Centre for Anti-Corruption and Open Leadership (CACOL) had called for swift action from the Federal Ministry of Education, EFCC, and ICPC. The group expressed deep concern over reports of unauthorized deductions by 51 universities from federal student loan disbursements.
In a statement signed by CACOL’s Director of Administration and Programmes, Tola Oresanwo, on behalf of Chairman Debo Adeniran, the organisation condemned the alleged exploitation of vulnerable students.
“This alarming practice, if confirmed, constitutes a gross violation of students’ rights and a betrayal of the scheme’s core mission — to promote access to education for underprivileged Nigerians,” Oresanwo stated.Travel guides
CACOL warned that corrupt practices by university administrators could undermine the purpose of the student loan initiative.
“The scheme was designed to empower Nigerian youth, not to enrich institutions through unjust deductions,” the statement said. “Such actions are a disservice to our nation’s future.”
Background
NELFUND was established by President Bola Ahmed Tinubu’s administration to enhance access to higher education for Nigerian students.
Initially, the Students Loan (Access to Higher Education) Act was signed into law on June 12, 2023, shortly after President Tinubu assumed office. However, the 2023 Act faced criticisms regarding its restrictive eligibility criteria and limited scope, prompting the administration to propose amendments.
Consequently, the Students Loan (Access to Higher Education) (Repeal and Re-Enactment) Act, 2024, was signed into law on April 3, 2024.
The revised Act established NELFUND as a corporate body responsible for managing the student loan scheme. Under the new provisions, all students of publicly-owned higher educational institutions and government-approved vocational and skills acquisition centres are eligible to access the loans, regardless of their family’s income level.
Additionally, the loans now cover not only tuition fees but also other educational expenses, addressing previous limitations.
The fund’s objectives include providing financial support to qualified Nigerians for their studies in approved institutions, thereby promoting equal access to quality education and fostering a knowledge-driven economy. (SaharaReporters)
