- Insists no mismanagement of funds under students’ loan
- As ICPC digs deep, says no hiding place for corrupt officials
BY COBHAM NSA – In a season where the popular sound track seems to be “Corruption everywhere“, the Nigerian Education Loan Fund (NELFUND) has debunked allegations of massive funds’ mismanagement under the current Student Loan Scheme (SLS).
Categorically, NELFUND maintained that no funds have been mismanaged, stolen, or are unaccounted for under the scheme as being peddled in certain quarters.
The organization was reacting to reports that the Independent Corrupt Practices and Other Related Offences Commission (ICPC) is probing allegations that out of N100 billion the government released for the Student Loan, only N28.8 billion was disbursed while N71.2 billion was diverted.
This is as the anti-corruption Commission further disclosed that NELFUND officials and some managements of universities have been invited for investigation over the allegations.
However, offering clarification on the allegations currently trending in the media space, NELFUND expressed concerns over the reports, saying it was alarmed by the surge of “inaccurate, misleading, and dangerously speculative reports circulating in the public space” regarding the administration of the student loan scheme.
In a statement on Thursday by its Director, Strategic Communications, Oseyemi Oluwatuyi, NELFUND said; “These reports, which suggest misappropriation and mismanagement of funds, are entirely false, grossly irresponsible, and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians.
“This is a coordinated distortion of facts that undermines public trust, weaponizes misinformation, and threatens the credibility of a national intervention still in its infancy.
“We wish to state the following, unequivocally: No funds have been mismanaged, stolen, or are unaccounted for under the current NELFUND student loan scheme.
“The scheme officially launched its student loan application portal in 2024. As of today, all institutional fees are paid directly to verified institutions, while upkeep allowances are disbursed to the verified bank accounts of eligible student applicants.
“The figures and funding amounts currently being misrepresented in the public are drawn from entirely different education financing interventions predating NELFUND’s operational commencement. They bear no relevance to the current student loan scheme and should not be falsely attributed to this institution.
“NELFUND operates a zero human interface, fully automated loan system that eliminates opportunities for financial misconduct. Every application and disbursement is digitally tracked, time stamped, and verifiable.
“Our commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering. We have complied fully with every request for information and will continue to uphold the highest standards of public accountability.
“The circulation of unverified, context-free, and inflammatory claims at this critical stage of implementation is not only reckless, it is a deliberate sabotage of a nationally significant, people centered programme designed to expand access to tertiary education and economic mobility.”
While urging the Media, stakeholders, and the public to resist sensationalism and await verified updates directly from NELFUND, the statement said the organization remains focused and committed to the transparent delivery of its national mandate.
ICPC Investigates Alleged Funds Diversion
Despite the spirited public denial by NELFUND officials, the ICPC says comprehensive investigations have already commenced into alleged discrepancies surrounding the student loans’ disbursement
An updated statement signed by its spokesman, Mr Demola Bakare, said though a clear case of discrepancies has not been established in the Student Loan Scheme administration, the ongoing probe is extending to beneficiary institutions and individual student recipients.
The Anti-graft agency’s statement stated thus; “This action follows a recent media report alleging that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme.
“These institutions were alleged to have made unauthorized deductions ranging from N3,500 to N30,000 from each student’s institutional fees received through the loan fund.
“Open source revealed significant gaps in the financial disbursement process, alleging that while 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.
“The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report. Letters of investigation and invitations were dispatched to 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.
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.
“According to the Commission, the responses received were critically analyzed, and interviews were conducted with the concerned individuals.
“According to the ICPC, its strength of investigation revealed that the total money received by NELFUND as of March 19, 2024, was N203.8 billion.
““The breakdown showed that N10 billion was an allocation from the Federation Allocation Account Committee, N50 billion was from the Economic and Financial Crimes Commission, N71.9B was from the Tertiary Education Trust Fund, while another N71.9 billion was also from the same Tertiary Education Trust Fund.”
“ICPC, however, found that the total amount disbursed to institutions from inception to date is about N44,200,933,649.00, while a total of 299 institutions have benefited from the funds released.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students having benefited from the fund.
“The ICPC confirmed that a clear case of discrepancies has NOT been established in the administration of the student loan scheme and announced that its investigation will now extend to beneficiary institutions and individual student recipients.
“Further updates will be provided as the investigation progresses.”
According to the statement; “The future of Nigeria’s youth is too important to be hijacked by misinformation”.
