Table of Contents

Student Loan Controversy: ICPC Retracts Claims of Disbursement Irregularities

The former allegation of disparities in the distribution of student loans under the Nigeria Education Loan Fund (NELFUND) has been withdrawn by the Independent Corrupt Practices and Other Related Offenses Commission (ICPC).

Hours after the commission’s previous update implied that disparities were already established in the student loan disbursements, ICPC’s Director of Public Enlightenment and Education, Demola Bakare, announced the reversal in a revised statement on Thursday.

According to the commission’s prior conclusions, there were significant gaps in the student loan scheme’s financial records.

It further stated that although N100 billion was purportedly granted by the federal government, only N28.8 billion of that amount was really given to students, leaving N71.2 billion missing.

The statement said, “The ICPC announced that its investigation will now extend to beneficiary institutions and individual student recipients and confirmed that a clear case of discrepancies has been established in the administration of the student loan scheme.”

“Unintentionally, the word ‘NOT’ was missing in the second to last paragraph of our earlier press release in respect of an ongoing investigation regarding the Student Loan Scheme,” the commission stated in its revised statement, a retraction of the assertion.

The omitted word gave the false appearance that the purported inconsistencies or misdirection had been proven, it continued.

“We admit that this is not the case; indeed, we accept that the same part of the sentence also contradicts the whole paragraph.”

Mr. Bakare explained that what has been verified so far is the total amount received and disbursed by NELFUND.

The probe would need to go into the receiving institutions and individuals before any logical deductions could be drawn, he continued. “The impression of diversion and the issue of discrepancies do not exist at this stage.”

The inquiry

According to the commission, investigations will now concentrate on student beneficiaries and postsecondary institutions. It also mentioned the official petition that started the investigation, which was submitted by the National Orientation Agency (NOA) and NELFUND.

It stated that as soon as the National Orientation Agency (NOA) and NELFUND filed a formal petition, the chairperson of its Special Task Force started looking into the matter.

The statement claims that initial research revealed significant inconsistencies in the loan scheme’s financial records.

According to the study, N28.8 billion of the N100 billion that the federal government allegedly granted for the program was actually given to students, leaving N71.2 billion unaccounted for.

“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, received invitations and letters of investigation.”

Additionally, NELFUND’s executive director and chief executive officer were asked to submit case-related documents and justifications.

The commission reportedly conducted interviews with the involved parties and closely examined the responses that were received,” he stated.

According to the commission’s findings as of March 19, 2023, NELFUND received N203.8 billion, he clarified. This comprises two distinct tranches of N71.9 billion each from the Tertiary Education Trust Fund (TETFund), N50 billion from the Economic and Financial Crimes Commission, and N10 billion from the Federation Allocation Account Committee.

Even so, 293,178 students benefited from a total payout of N44.2 billion to 299 institutions.

“Distraction of funds”

At least 51 higher education institutions unlawfully withheld between N3,500 and N30,000 from student fees paid out via the loan program, according to a Punch report.

The ICPC took action as a result of the accusations, which also included the diversion and withholding of cash intended for students.

Concerns were also voiced by the National Association of Nigerian Students (NANS), which claimed that certain universities were transferring student loan money into personal accounts.

Akinbodunse Felicia, the association’s vice president for inter-campus and gender affairs, referenced a National Orientation Agency (NOA) investigation that showed banks and certain institutions conspired to defraud students.

Governmental intervention

The NELFUND Committee of the House of Representatives has also gotten involved.
According to NANS National President Olusola Oladoja, the committee promised to include ICPC in overseeing payments and guaranteeing openness.

In order to determine the full scope of the misconduct, the ICPC has stated that it is collaborating with the NOA and other pertinent agencies.

Nigerians can obtain student loans for further education, vocational training, and skill development from NELFUND, a body corporate created by the Student Loans (Access to Further Education) Act, 2024, which replaced the 2023 Act.

The purpose of the loans is to assist students in paying for tuition, other educational expenses, and sometimes maintenance costs.