The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a comprehensive investigation into alleged financial irregularities within the Nigeria Education Loan Fund (NELFUND), a scheme designed to provide financial aid to Nigerian students. Initial findings suggest a substantial discrepancy between the funds released by the Federal Government and the amount actually disbursed to students. The ICPC’s preliminary investigation revealed that while N100 billion was allocated for the program, only N28.8 billion reached the intended recipients, leaving a significant N71.2 billion unaccounted for. This revelation has sparked outrage and calls for accountability from student bodies and other stakeholders, raising concerns about the integrity and effectiveness of the student loan scheme.
Further investigation by the ICPC has uncovered a more complex financial picture. The commission discovered that NELFUND had actually received a total of N203.8 billion from various sources, including the Federation Allocation Account Committee, the Economic and Financial Crimes Commission, and the Tertiary Education Trust Fund. Of this amount, only approximately N44.2 billion has been disbursed to 299 beneficiary institutions, supporting 293,178 students. This leaves a substantial sum of roughly N159.6 billion yet to be distributed. While the ICPC has not definitively declared this remaining amount as missing, the discrepancy raises serious questions about the management and transparency of the loan fund. The commission has acknowledged the existence of discrepancies and is expanding its investigation to include beneficiary institutions and individual student recipients.
The ICPC’s investigation was prompted by media reports alleging unauthorized deductions by tertiary institutions from student loan disbursements. These institutions were accused of deducting amounts ranging from N3,500 to N30,000 from each student’s loan, potentially exploiting the very students the program is designed to assist. The ICPC’s Special Task Force swiftly initiated investigations following these reports, issuing letters of investigation and invitations to key stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation, senior officials from the Central Bank of Nigeria, and the CEO and Executive Director of NELFUND. The commission analyzed the responses received and conducted interviews with relevant individuals to gather evidence and ascertain the extent of the alleged financial improprieties.
The National Association of Nigerian Students (NANS) has responded vehemently to the ICPC’s findings, threatening nationwide protests if the government fails to recover the allegedly missing funds. NANS expressed deep concern over the alleged collusion between institutions and financial bodies to exploit students and called for swift action and transparency in the investigation. They emphasized the importance of holding those responsible accountable, regardless of their position or affiliation. The student body’s strong reaction underscores the significance of the loan scheme for many students and the potential impact of these alleged irregularities on their access to education.
The Ministry of Education has also taken action in response to the allegations, scheduling an urgent meeting with vice-chancellors and other heads of institutions to address the reported fraudulent activities. The meeting, aimed at investigating the matter and ensuring accountability, reinforces the Ministry’s commitment to transparency and its zero-tolerance policy towards financial malpractice in the education sector. The Minister’s involvement signals a recognition of the gravity of the situation and the need for a comprehensive response to address the issues surrounding the student loan scheme.
The Academic Staff Union of Universities (ASUU) has also weighed in on the controversy, stating that the ICPC’s findings validate their earlier criticisms of the NELFUND. ASUU had previously expressed concerns about the potential for corruption within the scheme, and the current investigation appears to confirm their apprehensions. Their statement underscores the broader issues of accountability and transparency within the Nigerian education system and the need for robust oversight mechanisms to prevent the misuse of public funds. The unfolding investigation highlights the urgent need for reforms within the NELFUND to ensure its efficacy and prevent further financial irregularities, safeguarding the interests of the students it aims to support.
