The Independent Corrupt Practices and Other Related Offences Commission has begun a full investigation into alleged fraud in the disbursement of student loans under the Nigeria Education Loan Fund.
This follows complaints by the National Orientation Agency that some schools and banks were working together to delay payments to students, possibly to gain from the process.
Also, reports claimed that about 51 schools made unauthorized deductions of between N3,500 and N30,000 from student fees paid through the loan fund.
In a statement on Thursday, ICPC spokesperson, Demola Bakare, said the agency’s Chairman’s Special Task Force quickly began work after receiving the report.
He said, “Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving an unaccounted sum of N71.2 billion.”
According to Bakare, further checks showed that NELFUND had received a total of N203.8 billion as of March 19, 2023.
Out of this, N44.2 billion was said to have been disbursed to 299 institutions, benefiting over 293,000 students. This leaves about N159.6 billion still untouched or unaccounted for.
Although the ICPC did not say the remaining amount was missing, it confirmed that “a clear case of discrepancies has been established in the administration of the student loan scheme.”
Bakare also said letters were sent to several important offices, including the Director General of the Budget Office, the Accountant General of the Federation, and top officials at the Central Bank of Nigeria.
He added, “The Chief Executive Officer and Executive Director of NELFUND were invited to provide documents and explain their role in the disbursement.”
He listed the funds received by NELFUND as follows:
- N10 billion from the Federation Allocation Account Committee
- N50 billion from the Economic and Financial Crimes Commission
- N71.9 billion from the Tertiary Education Trust Fund
- Another N71.9 billion from TETFund
The ICPC said it is now moving its investigation to cover schools and students who benefited from the loan.
The agency promised to ensure that all public funds are accounted for and used properly.
