The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has disclosed that only ₦28.8 billion out of the ₦100 billion allocated for student loans has reached the intended beneficiaries in tertiary institutions. This revelation indicates that over 71% of the funds—approximately ₦71.2 billion—may have been misappropriated by university managements entrusted with distributing the financial aid.
Demola Bakare, spokesperson for the ICPC, made this announcement during a press briefing in Abuja. He confirmed that a preliminary probe has exposed large-scale discrepancies in the financial management of the Nigeria Education Loan Fund (NELFUND) scheme. In response, the Commission has invited key figures such as the Director-General of the Budget Office, the Accountant-General of the Federation, senior officials from the Central Bank of Nigeria (CBN), and executives of NELFUND to provide vital documents and clarifications regarding the disbursements.
This development follows recent concerns raised by the Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu, who warned that certain universities were attempting to sabotage the student loan initiative launched by the Tinubu administration. Issa-Onilu pointed out that at least 51 tertiary institutions were implicated in unlawful deductions and exploitation within the NELFUND program.
Reports from multiple media sources also alleged that these institutions were engaging in unauthorized deductions ranging from ₦3,500 to ₦30,000 from each student’s loan disbursement, effectively misusing funds meant to support access to higher education.
Bakare stated that the ICPC had launched a full-scale investigation immediately after these allegations surfaced. He emphasized that anyone found to have misappropriated funds would face legal consequences.
He further disclosed that the ICPC’s investigation revealed a significant shortfall in disbursed funds. Although the Federal Government allocated ₦100 billion for the loan program, only ₦28.8 billion has been traced directly to students. Additionally, data from NELFUND showed that as of March 19, 2024, the agency had received a total of ₦203.8 billion in funding. This included ₦10 billion from the Federation Allocation Account Committee (FAAC), ₦50 billion from the Economic and Financial Crimes Commission (EFCC), and two separate tranches of ₦71.9 billion from the Tertiary Education Trust Fund (TETFund).
After reviewing submissions and conducting interviews with relevant parties, the ICPC determined that approximately ₦44.2 billion has so far been disbursed across 299 educational institutions, benefiting around 293,178 students. However, this figure still leaves a large portion of the total funding unaccounted for.
The Commission confirmed the existence of serious discrepancies in the fund’s administration and announced that the investigation would now extend to the institutions that received funds and possibly to individual student beneficiaries.
Bakare assured the public that updates will be provided regularly as the inquiry unfolds, reaffirming the ICPC’s commitment to transparency and accountability in the management of public education funds.