The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has said its investigation into alleged discrepancies surrounding the disbursement of the student loans scheme under the Nigeria Education Loan Fund (NELFUND), would be extended to beneficiary institutions and individual student recipients.
This is following the commencement of a comprehensive investigation into recent media report alleging that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme.
In a statement issued on Thursday, ICPC said the affected institutions were alleged to have made unauthorized deductions ranging from N3,500 to N30,000 from each student’s institutional fees received through the loan fund.
Director, Public Enlightenment and Education/Spokesperson for the Commission, Mr. Demola Bakare, who issued the statement noted that preliminary findings revealed a significant gap in the financial records of the disbursement process.
“While the federal government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving an unaccounted sum of N71.2 billion”, the Commission said, before adding that its Chairman’s Special Task Force immediately swung into action upon receiving the report.
According to the statement, letters of investigation and invitations were dispatched to key stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation, and senior officials from the Central Bank of Nigeria.
The statement added that the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case and the responses received were critically analyzed, while interviews were conducted with the concerned individuals.
According to the ICPC, its strength of investigation revealed that the total money received by NELFUND as of March 19, 2024, was N203.8 billion.
“The breakdown showed that N10 billion was an allocation from the Federation Allocation Account Committee, N50 billion was from the Economic and Financial Crimes Commission, N71.9B was from the Tertiary Education Trust Fund, while another N71.9 billion was also from the same Tertiary Education Trust Fund.”
ICPC, however, found that the total amount disbursed to institutions from inception to date is about N44,200,933,649.00, while a total of 299 institutions have benefited from the funds released.
The Commission further disclosed that as at today, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students having benefited from the fund.
“The ICPC confirmed that a clear case of discrepancies has not 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.
“Further updates will be provided as the investigation progresses”, the statement added.
Meanwhile, rights activist, Deji Adeyanju has called on the ICPC to arrest and prosecute anyone culpable in the alleged N71.2 billion student loan fraud.
Adeyanju described the alleged discrepancies as disappointing because it was happening at a time when millions of Nigerian students struggle to afford quality education.
He said that the alleged mismanagement of such a critical fund is not only unacceptable but also a gross betrayal of public trust and the hopes of young people across the country.
“I commend the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for swiftly launching an investigation into this matter. The steps taken so far are commendable and must continue until the truth is fully uncovered.
“I urge the ICPC to leave no stone unturned in identifying all individuals or institutions involved in this shameful act. Those found culpable must be prosecuted and made to face the full weight of the law.
“It is only through decisive action and justice that we can restore public confidence in the student loan scheme and ensure such a disgraceful breach never happens again”, Adeyanju said.
