NELFUND: Education Ministry, ICPC Launch Probes into Alleged Student Loan Mismanagement
The Federal Ministry of Education and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have launched investigations into suspected financial infractions in the disbursement of student loans by the Nigerian Education Loan Fund (NELFUND).
This follows reports of unauthorized deductions from tuition payments made directly to tertiary institutions on behalf of students. Education Minister Dr. Tunji Alausa described the allegations as “very disturbing and extremely concerning,” warning that any proven malpractice would be met with strict sanctions.
The ICPC also confirmed it is probing discrepancies in the scheme’s financial records. According to spokesperson Debola Bakare, initial findings show significant gaps, prompting the immediate involvement of the Commission’s Special Task Force. Key figures, including the Director-General of the Budget Office and the Accountant-General of the Federation, have been invited for questioning. NELFUND’s CEO and Executive Director have also submitted relevant documentation.
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ICPC’s analysis revealed that NELFUND had received a total of N203.8 billion as of March 2023 from multiple sources, including the Federation Account Allocation Committee and TETFund. However, only about N44.2 billion has been disbursed to 299 institutions, with 293,178 students benefiting from the funds.
In response to the allegations, NELFUND strongly denied any wrongdoing. A statement by its Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi, labeled the reports as “grossly irresponsible and dangerously misleading.” She emphasized that all disbursements are automated and directly tracked, with zero human interface to prevent abuse.
According to NELFUND, all tuition fees are paid directly to institutions while students receive a monthly upkeep allowance of N20,000. The agency dismissed claims of misappropriation as misinformation based on unrelated education funding programmes predating NELFUND’s operations.
Meanwhile, the Ministry of Education has summoned vice chancellors of the affected universities and NELFUND’s Managing Director to a crucial meeting scheduled for May 6. A compliance-tracking initiative and an Annual University Transparency Index will also be launched in partnership with the Athena Centre to enhance accountability.
Minister Alausa reaffirmed the government’s commitment to transparency, stating: “Any attempt to exploit the fund undermines the very purpose of its creation and contradicts President Bola Tinubu’s vision for inclusive access to education.”
He further assured the public that anyone found culpable in mismanaging student loans would face the full weight of the law.
By PRNigeria
