The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a comprehensive investigation into widespread irregularities in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND).
This move follows alarming media reports alleging that at least 51 tertiary institutions made unauthorised deductions from institutional fees paid through the loan scheme. Students reportedly faced illegal charges ranging from ₦3,500 to ₦30,000.
In a statement released on Thursday, the ICPC disclosed that its preliminary findings uncovered significant discrepancies in financial records related to the student loan disbursement. Although the Federal Government reportedly allocated ₦100 billion to the initiative, only ₦28.8 billion has been traced directly to student beneficiaries — leaving a staggering ₦71.2 billion unaccounted for.
The Commission activated its Chairman’s Special Task Force to probe the matter. Letters of investigation and formal invitations were sent to top government stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation, and senior officials of the Central Bank of Nigeria (CBN).
Officials of NELFUND — including its Chief Executive Officer and Executive Director — were also summoned to provide documents and clarify operational procedures. According to the ICPC, the documents and interviews conducted offered further insights into the fund’s financial flow.
As of March 19, 2023, NELFUND had reportedly received ₦203.8 billion, which included ₦10 billion from the Federation Allocation Account Committee (FAAC), ₦50 billion recovered by the Economic and Financial Crimes Commission (EFCC), and two tranches of ₦71.9 billion each from the Tertiary Education Trust Fund (TETFund).
However, only ₦44.2 billion has been disbursed across 299 institutions, reaching 293,178 students. The ICPC confirmed that clear patterns of mismanagement and financial discrepancies have emerged, prompting an expansion of the probe to include all 299 beneficiary institutions and individual loan recipients.
The Commission emphasised that updates will be provided as the investigation progresses.
The Centre for Anti-Corruption and Open Leadership (CACOL) had called for swift action from the Federal Ministry of Education, EFCC, and ICPC. The group expressed deep concern over reports of unauthorized deductions by 51 universities from federal student loan disbursements.