FG Launches Probe Into Student Loan Disbursement as NELFUND Says, “We Welcome the Scrutiny”
The Nigeria Education Loan Fund (NELFUND) has declared that it is still subject to examination and reaffirmed its dedication to openness and accountability in the wake of the Independent Corrupt Practices and Other Related Offenses Commission’s (ICPC) clarification regarding the disparities in student loan disbursements.
However, the Ministry of Education indicated in a statement from the Director of Press and Public Relations that the Managing Director of NELFUND and the vice-chancellors of the impacted universities would meet urgently on May 6, 2025.
Following a recent media revelation that claimed that 51 tertiary institutions were engaged in unlawful deductions and exploitation relating to the NELFUND scheme, this action was taken.
However, NELFUND stated yesterday that it was concerned about the recent increase in what it called dangerously speculative, misleading, and false reports that have been making the rounds about how the student loan program is being administered.
Human rights advocate and lawyer Deji Adeyanju, meanwhile, asked the ICPC to arrest government officials responsible for the allegedly missing N71.2 billion and to cease being helpless against powerful looters.
Allegedly, the institutions took between N3,500 and N30,000 in unauthorized deductions from each student’s loan fund-received institutional fees.
An important gap in the disbursement process’s financial records was discovered by preliminary findings. Only N28.8 billion of the N100 billion that the federal government allegedly released for the program was given to students, leaving an astounding N71.2 billion unaccounted for.
ICPC attested that as soon as the report was received, its chairman’s special task force got to work.
However, it said Wednesday night that there were no known disparities in the student loan payouts.
The lack of the word “not” in the agency’s previous announcement, according to a statement released on Thursday by ICPC spokesman Demola Bakare, gave the impression that there were alleged disparities in the loan disbursements.
The ICPC declared that it will now expand its inquiry to include beneficiary institutions and individual student beneficiaries, confirming that no obvious incidence of irregularities in the student loan scheme’s administration has been found.
Key stakeholders, such as the Director General of the Budget Office, the Accountant General of the Federation, and senior officials of the Central Bank of Nigeria (CBN), 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 claims that those involved were interviewed and that the responses were critically examined.
According to the ministry’s statement, “A report alleging that certain Nigerian universities have made unauthorized deductions from funds disbursed under the NELFUND scheme has been received with deep concern by the Federal Ministry of Education.”
The charges were characterized as “very disturbing and extremely concerning” by Minister Dr. Olatunji Alausa, who emphasized that any unauthorized deduction from student loans not only violates financial ethics but also jeopardizes the premise upon which the NELFUND was founded. If confirmed, he said, such acts would be a flagrant betrayal of the government’s commitment to ensuring that all people had equal access to education and a serious breach of public confidence.
He gave Nigerians his word that the issue would not be ignored and that those found guilty would be held accountable.
On May 6, 2025, the government is calling an urgent meeting with the NELFund Managing Director and the vice-chancellors of the impacted universities. The purpose of the meeting is to ensure accountability, conduct a comprehensive investigation into the incident, and reiterate the ministry’s zero-tolerance policy for financial malfeasance in the education sector.
The allegations of financial misappropriation and mismanagement were deemed “entirely false, grossly irresponsible, and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians,” according to Oseyemi Oluwatuyi, Director of Strategic Communications at the NELFUND.
“This is a concerted falsification of facts that erodes public confidence, weaponizes false information, and jeopardizes the legitimacy of a national intervention that is still in its early stages,” he continued.
“The numbers and funding amounts that are being misrepresented to the public are taken from completely separate school finance initiatives that existed before the NELFUND began operations. They should not be mistakenly attributed to this institution because they have no bearing on the current student loan program.
Adeyanju responded to the news yesterday in Abuja by expressing his profound unhappiness with the recent disclosures regarding student loan disbursements.
He said, “The alleged mismanagement of such a crucial fund is not only unacceptable but also a gross betrayal of public trust and the hopes of young people across the country at a time when millions of Nigerian students struggle to afford quality education.”
“I applaud ICPC for initiating an investigation into this matter so quickly.”
Until the truth is completely revealed, the actions initiated thus far must continue. I implore the commission to do all in its power to find every person or organization responsible for this ignominious conduct.
“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,” he continued, calling for the punishment of those found guilty.
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