*Says N71.2bn Of N100bn Disbursed Unaccounted For, Later Backtracts
*NELFUND Counters, Insists All Funds Unaccounted For
*Institutions Deny Sharp Practices
*Activist Call For Thorough Probe, Sanction
THE Independent Corrupt Practices and other related offences Commission (ICPC) has commenced investigation into the management of the Nigerian Education Loan Fund (NELFUND) and alleged sharp practices surrounding it.
This followed an alarm raised two weeks ago by the Director General (DG) of the National Orientation Agency (NOA), Mr. Lanre Issa-Onilu, that the universities were trying to sabotage the President Bola Tinubu-led government on the loan scheme.
Issa-Onilu said anti-corruption agencies in the country had been alerted to scrutinise activities of some tertiary institutions that were “colluding with banks to sabotage the student loan scheme.”
NELFUND had earlier raised an alarm accusing some higher education institutions of withholding information about student loan disbursements from beneficiaries.
Its Managing Director, Akintunde Sawyerr, said it had been discovered that some institutions were failing to notify students when loan payments are made, while still demanding fee payments from the affected students, thereby causing confusion.
While describing such practice as “unethical” and a “direct violation” of NELFUND’s principles, Sawyerr warned that legal action would be taken against any institution found to be engaging in such “deceptive practices.”
He urged all institutions to be transparent and work with the Fund to ensure the success of the scheme.
NOA, through its Deputy Director of Communications and Media, Paul Odenyi, said its investigation confirmed the development, adding that the action raised “serious concerns over transparency and accountability in the new student loan scheme.”
Quoting Issa-Onilu, Odenyi said the report was based on findings by Community Orientation and Mobilisation Officers (COMO) across the country.
Speaking on a television programme, Issa-Onilu said the affected higher institutions were under the radar of anti-graft agencies, noting: “We also heard of some schools that charge some fees, processing or so-called fees, for the students to access the funds, something that you played no role in.
“We see a lot of students complaining that it is only after they had made payment that they discover that NELFUND has paid for the tuition and schools did not inform them.
“We had to relate to NELFUND and we found out it was not news to NELFUND, and NELFUND was actually dealing with the issues already.
“The anti-corruption agencies have been put on notice by NELFUND. Now, students can track from application to disbursement by themselves; schools cannot do that anymore.
“It is so sad that any institution would be involved in this kind of thing. It is like sabotaging the citizens. Let’s not even talk about the government; it is about sabotaging ourselves.”
Meanwhile, ICPC, in a statement on Thursday, May 1, by its Director, Public Enlightenment and Education, Mr. Demola Bakare, said it had earlier investigated the alleged discrepancies surrounding the disbursement of student loans, following a report alleging that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation in the scheme.
He said the institutions were alleged to have made unauthorised deductions ranging from N3,500 to N30,000 from each student’s fees received through the Fund and its preliminary findings revealed a significant gap in the financial records of the disbursement process of the Fund.
He stated that only N28.8billion was disbursed to students in various tertiary institutions, instead of N100billion released to the schools, with preliminary investigations uncovering that not less than N71.2billion had not been accounted for.
The ICPC spokesman noted that key stakeholders and senior officials of relevant government agencies and institutions were invited to provide documentation and explanations relevant to the case.
Bakare assured that those found culpable would be brought to book, adding: “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 , including Director General of the Budget Office; Accountant General of the Federation and senior officials from the Central Bank of Nigeria (CBN).
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.
“Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the federal government reportedly released N100billion for the scheme, only N28.8billion was disbursed to students, leaving an unaccounted sum of N71.2 billion.”
While giving the breakdown of the NELFUND’s records, Bakare said the ICPC’s strength of investigation revealed that the total money received by NELFUND as of March 19, last year, was N203.8billion.
“The breakdown showed that N10billion was an allocation from the Federation Allocation Account Committee (FAAC); N50billion was from the Economic and Financial Crimes Commission (EFCC); N71.9billion was from the Tertiary Education Trust Fund (TETFund); while another N71.9billion was also from the same TETFund.”
Bakare stated that responses received by the Commission were critically analysed and interviews were conducted with the concerned individuals, assuring that the Commission would from time-to-time provide further updates as the investigation progresses.
He said ICPC, however, found that the total amount disbursed to institutions from inception to date was about N44,200,933,649.00, while a total of 299 institutions have benefited from the funds released.
He stated: “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.”
However, Bakare, in another statement released later, titled, ‘Urgent Clarification and Admission of Error,’ said: “Unintentionally, the word ‘not’ was missing in the second to the last paragraph of our earlier press release in respect of an ongoing investigation regarding student loan scheme.
“The missing word created an erroneous impression that the alleged discrepancies or diversion has been established.
“We admit that this is not the case, indeed, we accept that the same part of the sentence also contradicted the whole paragraph.
“The paragraph ought to read: ‘The ICPC confirmed that a clear case of discrepancies has NOT 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 general public is urged to exercise patience, as thorough investigations require time and ample resources.
“However, persons with information of value are encouraged to reach out to the Commission through info@icpc.gov.ng.
“The earlier error, though already corrected on our Website, is regretted. Our investigations are still ongoing and there are no indictments yet.”
Following the first statement, NELFUND, in its reaction, had insisted that no funds had been mismanaged or stolen, saying it was alarmed by what it called the recent surge of inaccurate, misleading and dangerously speculative reports circulating in the public space regarding the administration of the scheme.
A statement by its Director, Strategic Communications, Oseyemi Oluwatuyi, stated: “These reports, which suggest misappropriation and mismanagement of funds, are entirely false, grossly irresponsible and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians.
“Our commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering. We have complied fully with every request for information and will continue to uphold the highest standards of public accountability.”
Already, some universities have dismissed allegations of engaging in sharp practices.
The Federal University of Technology (FUT), Akure, dismissed the allegations in a statement signed by its spokesman, Mr. Adebenro Adebanjo, on Thursday, May 1, insisting students of the institution who got loans were paid in full what NELFUND sent to their portal.
According to the statement: “For the avoidance of doubt, all students got the institutional fee, consisting of school fees, accommodation fee and acceptance fee, depending on the year of students, paid to them by NELFUND in full and those who had paid their fees before their loans got through have either been fully refunded or are waiting to be fully refunded.
“There is no basis for refusing to refund money to concerned students. It is a process that is being done with utmost transparency. Everything is being done to ensure that there is no error in the process.
“To be sure, most of the students who benefited from the NELFUND have been able to use the NELFUND credit to pay their school fees for the 2024/2025 session.”
Similarly, the Lagos State University of Science and Technology (LASUSTECH), while dismissing the allegation, said the funds allocated to the institution were sent to the students.
Its Public Relations Officer, Mr. Olanrewaju Kuye, told Daily Trust that the institution’s management disbursed the money received to the students, noting: “My Vice Chancellor is a very thorough person; he does not joke with being accountable.
“There is nothing like diversion; we paid all the money to the students directly. We did not touch any.”
Meanwhile, Executive Director of the Resource Centre for Human Rights and Civic Education (CHRICED), Mr. Ibrahim Zikirullahi, said the scandal was yet another sad narrative.
he stated: “If you observe since APC government came into power in 2015, all of the social intervention programmes they introduced have been plagued with one form scandal or the other.
“This tells you of the level of commitment and sincerity of the APC government in meeting the need of ordinary Nigerians.
“How do you explain to the world that out of the sum of over N200billion received by the agency managing the students loan scheme, only N40billion was disbursed?
“We call on the anti-graft agencies to carry out a thorough investigation into these observed discrepancies and anyone found culpable of mismanagement of these funds at any level must be made to face the full wrath of the law.”
In the same vein, Country Director of ActionAid Nigeria (AAN), Mr. Andrew Mamedu, while expressing dismay over the development, said it is not merely administrative misconduct, but corruption at its core.
Mamedu stated: “These institutions have not only betrayed public trust, but have also actively undermined the very ideals of transparency, equity and social justice that education should embody.
“Fee hikes ranging from N2,500 to N30,000 per student may seem trivial on paper, but when calculated across tens of thousands of students, this abuse snowballs into a multi-million-naira scandal.
“From AAN’s conversations with students, this is seemingly not an isolated incident; it is a coordinated, normalised pattern of corruption. This scandal is a brutal reminder that when institutions lose their soul, students become collateral damage.
“These are young Nigerians who turned to the government’s loan scheme out of desperation, not convenience, and what they got in return was exploitation.”
He urged the immediate investigation and suspension of all institutional heads complicit in this scandal, adding: “We also call on the EFCC and ICPC to move beyond mere observation or investigation and take decisive legal action.
“One would have thought that paying institutions directly was the more efficient and secure route to minimise risks of student misuse and ensure timely tuition payments.’’
Lawyer and activist, Mr. Deji Adeyanju, urged ICPC to arrest government officials allegedly behind the missing N71.2billion.
In his reaction to the development, on Thursday, May 1, in Abuja, Adeyanju expressed disappointed and alarmed by the revelation.
According to The Punch, Adeyanju said: “At a time when millions of Nigerian students struggle to afford quality education, the alleged mismanagement of such a critical fund is not only unacceptable, but also a gross betrayal of public trust and the hopes of young people across the country.
“I commend the ICPC for swiftly launching an investigation into this matter. The steps taken so far are commendable and must continue until the truth is fully uncovered.
“I urge the ICPC to leave no stone unturned in identifying all individuals or institutions involved in this shameful act.
“Those found culpable must be prosecuted and made to face the full weight of the law. It is only through decisive action and justice that we can restore public confidence in the student loan scheme and ensure such a disgraceful breach never happens again.”
