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01 May 2025 at 19:29With questions lingering over where the ₦71.2 billion went and how it was handled by university administrators, calls for accountability are growing across the education and finance sectors.The Independent Corrupt Practices and Other Related Offences Commission (ICPC) headquarters. [Facebook]The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has revealed that a staggering ₦71.2 billion out of ₦100 billion allocated for student loans has not reached its intended beneficiaries—students in Nigeria’s tertiary institutions—raising alarm over possible large-scale diversion of public funds.Demola Bakare, spokesperson for the ICPC, told journalists in Abuja on Thursday that preliminary investigations had uncovered that only ₦28.8 billion of the ₦100 billion released for the scheme had been disbursed to students, despite clear records indicating that the institutions had received the funds.
“Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released ₦100 billion for the scheme, only ₦28.8 billion was disbursed to students, leaving an unaccounted sum of ₦71.2 billion,” Bakare stated.
The ICPC’s action follows mounting public concern and warnings from federal agencies. Two weeks ago, the Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu, accused 51 tertiary institutions of deliberately sabotaging the Tinubu administration’s efforts through unauthorised deductions and alleged manipulation of the student loan system.
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Issa-Onilu claimed that institutions had levied illegal charges ranging from ₦3,500 to ₦30,000 from students’ loan disbursements, effectively eroding the actual benefit intended for those in need.
Bakare confirmed that the ICPC was now investigating individual schools and their role in the administration of the loans.
“The ICPC confirmed that a clear case of discrepancies has 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,” he said.
Providing further details, the ICPC said that NELFUND had received a total of ₦203.8 billion as of March 19, 2024.
The funds comprised ₦10 billion from the Federation Allocation Account Committee (FAAC), ₦50 billion from the Economic and Financial Crimes Commission (EFCC), and two separate allocations of ₦71.9 billion from the Tertiary Education Trust Fund (TETFund).
Despite the sizeable funding pool, only ₦44.2 billion has been disbursed to 299 institutions, according to the ICPC.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately ₦44.2 billion, with 293,178 students having benefited from the fund,” Bakare disclosed.
The Commission emphasised that its investigation would continue, with additional findings to be made public as they emerge.
“Comprehensive investigations into the alleged discrepancies surrounding the disbursement of students’ loans under the Nigeria Education Loan Fund (NELFUND) have commenced,” Bakare assured.
NELFUND fires back at ICPC – denies loan diversionHowever, in a swift rebuttal, NELFUND dismissed the allegations as baseless and damaging. In a statement issued Thursday, May 1, by its Director of Strategic Communications, Oseyemi Oluwatuyi, the Fund said recent media reports suggesting misappropriation of funds were “entirely false, grossly irresponsible, and deeply damaging.”
“The figures and funding amounts currently being misrepresented in the public are drawn from entirely different education financing interventions predating NELFUND’s operational commencement,” the statement read.
Oluwatuyi added that NELFUND operates under a fully automated, zero-human-interference model designed to eliminate any opportunity for financial malpractice.
“Every application and disbursement is digitally tracked, time-stamped, and verifiable,” he said.
Defending the Fund’s financial integrity, the spokesperson stressed that institutional fees are paid directly to verified schools, while students receive upkeep allowances through validated bank accounts.
“Our commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering,” Oluwatuyi added.
Despite the Fund’s assurances, the ICPC has maintained its position and intends to expand its investigation to include both the institutions involved and the actual student beneficiaries.
With questions lingering over where the ₦71.2 billion went and how it was handled by university administrators, calls for accountability are growing across the education and finance sectors.
This unfolding investigation has sparked broader concerns about public trust in new social intervention programs and the efficiency with which they are administered.
As the Tinubu administration seeks to promote access to higher education through financial support, the effectiveness of oversight mechanisms will likely remain under intense public scrutiny.
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