Student Loan Scandal: ICPC Probes Missing N71.2bn in NELFUND Disbursement

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has opened a formal investigation into the Nigeria Education Loan Fund (NELFUND) over an alleged N71.2 billion discrepancy in the disbursement of student loans.

In a statement issued on Thursday, the ICPC revealed that the Chief Executive Officer of NELFUND, Akintunde Sawyerr, along with officials from the Central Bank of Nigeria (CBN) and other critical stakeholders, have been summoned for questioning.

The investigation was triggered by widespread reports alleging that more than 51 tertiary institutions were making unauthorized deductions ranging from N3,500 to N30,000 from students’ institutional fees—funds paid through the loan scheme.

Key Highlights:

■ N100bn was reportedly released by the Federal Government

■ Only N28.8bn confirmed disbursed to students

■ Over 51 tertiary institutions allegedly made unauthorized deductions

■ 293,178 students across 299 institutions reportedly benefitted

According to the ICPC, “Its preliminary findings revealed that only N28.8 billion was disbursed to students, leaving an unaccounted balance of N71.2 billion.”

The Federal Government had reportedly released N100 billion for the student loan initiative. The ICPC noted that: “The Chairman’s Special Task Force immediately swung into action upon receiving the report issuing letters of investigation and invitations to key stakeholders, including the Director General of the Budget Office of the Federation, the Accountant General of the Federation, and senior officials from the CBN.”

Investigators also requested documentation from key figures in the finance and education sectors. The breakdown of funds received by NELFUND included “N10 billion was an allocation from the Federation Allocation Account Committee, N50 billion came from the Economic and Financial Crimes Commission, and N71.9 billion was received twice from the Tertiary Education Trust Fund.”

Despite this, the ICPC stated that; “The total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students benefiting from the fund.”

The commission affirmed that responses from the parties involved have been critically analyzed, and interviews are ongoing. As investigations continue, the ICPC reiterated its commitment to transparency and accountability in public fund management.