The Independent Corrupt Practices Commission (ICPC) has launched a probe into the management of Nigeria’s Education Loan Fund (NELFUND) following reports of financial irregularities. Preliminary findings reveal only N28.8 billion of the N100 billion released for student loans reached beneficiaries, leaving N71.2 billion unaccounted for.
The investigation follows complaints from the National Orientation Agency about tertiary institutions allegedly colluding with banks to sabotage the scheme. NELFUND had earlier accused some schools of failing to notify students about loan disbursements while still demanding fee payments.
ICPC spokesperson Demola Bakare confirmed invitations were extended to key officials including the Budget Office DG, Accountant-General, and NELFUND executives. While N44.2 billion was reportedly disbursed to 299 institutions, the commission found discrepancies in financial records.
Several universities, including FUTA and LASUSTECH, denied wrongdoing, asserting full disbursement to students. However, civil society groups like ActionAid Nigeria condemned the alleged exploitation, demanding swift prosecution of culprits.
NELFUND maintains no funds were mismanaged, calling recent reports “false and irresponsible.” The ICPC later corrected an earlier statement, clarifying no established case of diversion yet exists as investigations continue.
The student loan scheme, launched in 2023, aims to provide interest-free financing but has faced implementation challenges including delayed disbursements and fee inconsistencies. The probe comes as the Tinubu administration seeks to expand educational access amid economic hardships.
