ICPC says its probe follows a formal petition from NELFUND and the National Orientation Agency (NOA).
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched an investigation into discrepancies and irregularities in the disbursement of student loan under the Nigeria Education Loan Fund (NELFUND).
A statement on Thursday by ICPC's Director of Public Enlightenment and Education, Demola Bakare, said the chairperson of the agency's Special Task Force commenced investigations immediately after receiving a formal petition from NELFUND and the National Orientation Agency (NOA).
According to the statement, preliminary findings exposed major discrepancies in the financial records of the loan scheme.
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It said although, the federal government reportedly released N100 billion for the programme, only N28.8 billion was disbursed to students, leaving N71.2 billion unaccounted for.
"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," he said.
He explained that the commission's findings, as of 19 March 2023, showed that NELFUND received N203.8 billion. This includes N10 billion from the Federation Allocation Account Committee, N50 billion from the Economic and Financial Crimes Commission and two separate tranches of N71.9 billion each from the Tertiary Education Trust Fund (TETFund).
Despite this, the total disbursement to 299 institutions stood at just N44.2 billion, benefitting 293,178 students.
The ICPC stated that a clear case of discrepancies has been established and that the investigation will now extend to specific institutions and individual recipients.
The investigation follows reports that at least 51 tertiary institutions illegally deducted between N3,500 and N30,000 from student fees disbursed through the loan scheme.
The allegations also included the diversion and withholding of funds meant for students, prompting the ICPC to act.
The National Association of Nigerian Students (NANS) had also raised concerns, accusinged some institutions of diverting student loan funds into personal accounts.
The association's Vice President for Inter-Campus and Gender Affairs, Akinbodunse Felicia, cited a report by the National Orientation Agency (NOA) indicating collusion between some institutions and banks to short-change students.
According to Ms Felicia, students were not informed of disbursements made in their names and were still required to pay tuition fees independently.
She commended NELFUND's Managing Director, Akintunde Sawyerr, for acknowledging the corruption and pledged that NANS would stage nationwide protests on 24 April to draw the President's attention.
The NOA, through its Deputy Director of Communications and Media, Paul Odenyi, confirmed it had identified several institutions and banks involved in fraudulent practices. Its findings revealed that institutions withheld payments or failed to credit student accounts, despite receiving funds from NELFUND.
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Government action
The House of Representatives Committee on NELFUND has also waded into the matter.
NANS National President Olusola Oladoja disclosed that the committee pledged to involve ICPC in monitoring disbursement and ensuring transparency.
The ICPC has confirmed it is working in collaboration with NOA and other relevant agencies to uncover the extent of the malfeasance.
NELFUND, a body corporate established by the Student Loans (Access to Higher Education) Act, 2024 which repealed the 2023 Act, provides student loans to Nigerians for higher education, vocational training, and skills acquisition.
The loans are intended to help students cover tuition fees, other academic charges, and potentially upkeep costs.
