The Nigerian Education Loan Fund (NELFund) has firmly rejected allegations of misappropriation and mismanagement of funds earmarked for student loans. Oseyemi Oluwatuyi, the fund’s director of strategic communications, described the circulating media reports as “unverified, context-free, and inflammatory,” asserting that such claims are “false, grossly irresponsible, and damaging” to the integrity of the loan scheme.
This response comes in the wake of an investigation initiated by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which is looking into alleged irregularities regarding the disbursement of student loan funds. Reports indicated that 51 tertiary institutions may have engaged in illegal deductions related to the NELFund scheme.
According to ICPC, of the N100 billion allocated by the federal government for the student loan initiative, only N28.8 billion has been disbursed to students, leaving a staggering N71.2 billion unaccounted for. The commission noted that its special task force has begun questioning key stakeholders, including the director-general of the budget office, the accountant general of the federation, and officials of the Central Bank of Nigeria. Akintunde Sawyerr, NELFund’s managing director, has also been asked to provide relevant documentation.
ICPC’s report reveals that N203.8 billion had been received by NELFund from various sources as of March 19, 2024. These sources include allocations from the Federation Allocation Account Committee (FAAC), the Economic and Financial Crimes Commission (EFCC), and the Tertiary Education Trust Fund (TETFund). Out of this amount, N44.2 billion has been disbursed to 299 beneficiary institutions, impacting a total of 293,178 students.
In light of the ongoing scrutiny, Oluwatuyi emphasized that no funds have been misappropriated under the current student loan scheme, which officially launched its application portal in 2024. She clarified that all institutional fees are paid directly to verified institutions, while upkeep allowances are deposited directly into the verified bank accounts of eligible students.
“The reports circulating in the public space are based on outdated figures and previous interventions that predate our operations,” Oluwatuyi stated. She highlighted that NELFund employs an automated loan system designed to eliminate any possibility of financial misconduct, with every application and disbursement digitally tracked, time-stamped, and verifiable.
As the investigation unfolds, NELFund aims to maintain transparency and uphold the integrity of its operations while emphasizing its commitment to supporting students in Nigeria.