The managing director of the Nigeria Student Loans Fund, Akintunde Sawyerr, stated on Wednesday that the Independent Corrupt Practices and Related Offences Commission (ICPC) made an error when it alleged the diversion of funds by the agency.
Sawyerr, who appeared before the House committee on student loans, also said that the anti-graft agency underreported the funds received so far by the agency, as well as the amount it has disbursed.
He explained that although the anti-graft agency acknowledged its mistake, the claim of fund diversion in NELFund caused significant damage, as such news undermined the trust of Nigerians in the agency.
He expressed gratitude to the House for the opportunity to clarify the situation, adding that since its establishment, NELFund has received about N203 billion from the government and has disbursed ₦54 billion across 303 government-owned institutions and 293,000 students.
He said, “We are truly grateful for the opportunity to clear the air and to put to you the position as it relates to the social media and in some cases, print media reports about possible discrepancies, irregularities in the operation of the Nigerian Education Loan Fund.
“We took these reports with the utmost seriousness because we recognize several things. One, the importance of this particular policy thrust to the administration. We recognize the importance of this particular policy thrust to long-suffering students.
“We recognize the importance of this policy thrust to this House, where this particular bill was initially introduced by the former Speaker and ably supported by members of this House. So we feel very strongly about the role that this House has played, and we need to be very, very respectful of the support that has also come.
“If you recall, this act was reenacted or repealed and reenacted. So you’ve put a lot of work into it, and I think it went through in 24 hours, the reenactment. In a similar vein, in terms of the speed of reaction, we copied you.
“The ICPC released a statement last Friday, indicating that they had been looking into some matters and had concluded that some irregularities were taking place at the fund, such as the irregularities they seem to have identified with the institutions and their relationship with the students in terms of access to education and charges or otherwise.
“I think their report followed a report in the print media that suggested that 51 institutions were erring. We, as the NELFund, were caught up in that release by the ICPC, who indicated that they thought that funds had been diverted by the Nigerian Education Loan Fund.
“We immediately reacted to that report because we recognized the damage. Even though we knew it was unfounded, we recognized the damage that it might do to public confidence in a scheme where there was already a great deal of skepticism.
“Our reaction led to the ICPC looking again at their statement, and within a matter of hours, they retracted the statement that suggested that the Nigerian Education Loan Fund might be diverting funds.
“They did not retract their assertion about the irregularities in the educational system and in the institutions, but they retracted wholeheartedly their allegation that funds have been diverted. I don’t think that has ever happened in Nigeria, where a security agency within ours reverses itself on a statement that was made.
“Nevertheless, a great deal of damage was done because once news is out there, you can retract all you like. It takes on a life of its own, and a lot of confidence has been lost in our institution. It is sad for the institution of NELFund and the country of Nigeria.
“We have worked very hard to put out the narrative that actually the new statement by the ICPC vindicates NELFund and establishes the fact that no funds have been diverted.
“So, if I can quickly go to the numbers, just to set the scene for how the expenditure at NELFund has gone and how we see, based on the facts that we have, what institutions have and what students have benefited. So, I can say, first of all, before I go into the numbers, let me say that the funds that are received by NELFund and the law that you, this great house, put in place were very clear.
“90% of the funds that come to NELFund are to be spent exclusively on the loans. So, 90% of any funds that we receive must go towards paying the fees of students. Those funds cannot be touched and cannot be used for anything else. Any form of diversion in that regard will be a breach of the law.
“So, just going straight to the numbers, I can confirm that the Nigerian Education Loan Fund has paid, as of today, 303 government-owned institutions such as universities, polytechnics, and colleges of education.
“NELFund has disbursed a total of approximately ₦54 billion to those who applied. This is split into two sections. ₦30 billion has been paid to the 303 institutions, while ₦24 billion has been paid as upkeep, as pocket money or stipend to 293,000 students who are Nigerians studying at the tertiary level in Nigerian government-owned institutions.
“So far, NELFund has received ₦203 billion paid into the bank account that we have at the Central Bank of Nigeria. I’ll just break that down, because those funds came in segments. We received an initial ₦10 billion from the Office of the Accountant General, appropriated funds as directed by the Honourable Minister for Finance. We then received 71 billion naira from TETFund.
“This was as a result of an order by the President for TETFund to release 143 billion naira to NELFund. They released ₦71 billion in the first instance, and then another 71 billion. We then received a further ₦50 billion, which is recovered proceeds of crime, from the Economic and Financial Crimes Commission following a directive from the President.
“So the total comes to ₦203 billion received. I raise these, and I mention these figures, because apart from the fact that the statement by the ICPC was unfounded, and later confirmed by them that it was unfounded, there were also some inaccuracies in their announcement. Their announcement suggested that we have received ₦100 billion.
“Their announcement suggested that 28 billion had been disbursed. That figure was wrong. It was understated. Both figures are understated. And it therefore concluded that ₦71 billion may have been diverted.
“So you can see that from even the figures they provided, which were inaccurate in the first instance, the wrong conclusions were drawn even about that. I have to say that we take with the utmost seriousness any issues of funds being diverted within and outside or related to in any way NELFund, because we recognize that this project is sacred, and it should not be tampered with, because the people and the constituency that we are catering for really usually have nowhere else to turn to. They have no jobs.
“They have no opportunities. And education represents probably the last bridge that they can climb to get an opportunity. So, we recognise that we can stunt the growth of not just Nigeria, but of individuals within Nigeria, if we don’t behave and act responsibly.
Chairman of the House Committee on NELFund, Ifeoluwa Ehindero, said the committee has been inundated with a series of concerns by Nigerians on happening within the fund, hence the interaction to get to the root of the matter.
He said, “The administration of the student loan scheme has been implemented by the National Education Loan Fund. The committee has been inundated with several reports, making waves on social media, including concerns about possible diversion of loan funds and issues that have to do with the disbursement and administration of student loans by certain federal institutions.
“This has necessitated this meeting that we have called so that the agency, the National Education Loan Fund, should come and make clarifications and enlighten this committee on the issues that have been makingthe rounds on social media.
“So, based on this, you have been invited to make clarifications and enlighten this committee on the issues that have been going on, on the disbursement and administration of the student loans being administered by your agency.”
