N71.2bn Out of N100bn Disbursed for Student Loan Looted – ICPC

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has disclosed that out of the N100 billion released by the Federal Government for the Nigeria Education Loan Fund (NELFUND), only N28.8 billion has so far reached students in tertiary institutions, leaving a staggering N71.2 billion unaccounted for.

Speaking to the media in Abuja on Thursday, ICPC spokesperson Demola Bakare revealed that preliminary investigations suggest widespread misappropriation by university administrators. 

“Our findings so far indicate that the management of several tertiary institutions diverted a significant portion of the funds allocated for students’ financial aid,” he stated.

Bakare confirmed that critical stakeholders have been summoned, including the Director-General of the Budget Office, the Accountant-General of the Federation, senior officials of the Central Bank of Nigeria (CBN), and the Chief Executive and Executive Director of NELFUND. 

“Letters of investigation and invitations were dispatched to these key individuals to obtain documents and explanations relevant to the matter,” he said.

The ICPC’s probe followed a recent alert by Lanre Issa-Onilu, Director-General of the National Orientation Agency, who accused several universities of undermining President Bola Tinubu’s student loan initiative. 

Issa-Onilu alleged that 51 institutions were implicated in unlawful deductions from students' funds and called on anti-graft agencies to investigate and intervene.

Media reports also suggested that the implicated institutions charged unauthorized fees ranging from N3,500 to N30,000, taken directly from students’ loan-funded payments.

Providing more clarity on the issue, Bakare disclosed that NELFUND had received a total of N203.8 billion as of March 19, 2024. 

“According to our investigation, the funding sources include N10 billion from the Federation Account Allocation Committee, N50 billion from the EFCC, and two separate tranches of N71.9 billion from the Tertiary Education Trust Fund (TETFund),” he explained.

He continued, “Our analysis of the data shows that from inception till date, a total of N44.2 billion has actually been disbursed to institutions. So far, 299 tertiary institutions have received funds, and 293,178 students have benefited.”

Bakare added that the Commission has identified significant discrepancies and would be expanding the scope of its investigation to include both the institutions and individual students who received the loans.

“There’s clear evidence of inconsistencies in the administration of the student loan program, and we are committed to pursuing the matter thoroughly,” he stressed. “We will continue to provide updates as we make progress with the investigation.”

The ICPC reiterated its commitment to ensuring transparency and accountability in the management of public funds, particularly in critical sectors like education.