•ICPC says NELFUND disbursed only N44.2bn out of N203.8bn to 293,178 students in 299 institutions
•NELFUND denies allegations
The Federal Ministry of Education has commenced investigation into the alleged unauthorized deductions by universities from funds disbursed under the Nigerian Education Loan Fund (NELFUND) scheme.
This is just as the Independent Corrupt Practices and Other Related Offences Commission (ICPC) also commenced a comprehensive investigation into alleged discrepancies surrounding the disbursement of student loans as reported that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitations related to the NELFUND scheme.
Minister of Education, Dr Olatunji Alausa has accordingly summoned the affected Vice-Chancellors for an urgent meeting on May 6, alongside the Managing Director of NELFUND.
Director, Press and Public Relations, Mrs Folasade Boriowo, who conveyed this in a statement on Thursday in Abuja, said the Ministry received with deep concern a report alleging some Nigerian universities to have made unauthorised deductions from funds disbursed under the NELFUND scheme.
She said the Minister described the allegations as “very disturbing and extremely concerning,” emphasising that any unauthorised deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFUND was established.
Meanwhile, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) on Thursday disclosed that it was investigating “an open source which revealed that only N28.8 billion out of the N100 billion released by the Federal Government was disbursed to students, leaving an unaccounted sum of N71.2 billion.
According to the commission’s spokesman, Demola Bakare, in a statement, in “a recent media report alleged that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme.
These institutions were alleged to have made unauthorised deductions ranging from N3,500 to N30,000 from each student’s institutional fees received through the loan fund.
According to Bakare, who doubles as the Director, Public Enlightenment and Education at the anti-graft agency, “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.”
He informed that following this development, the ICPC Chairman’s Special Task Force immediately swung into action upon receiving the report in order to investigate same.
Letters of investigation and invitations were sent 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 (CBN).
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case,” the spokesperson said.
He further said that responses received from those invited were critically analysed, 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, N71.9 billion was from the Tertiary Education Trust Fund, while another N71.9 billion was also from the same Tertiary Education Trust Fund,” Bakare informed.
According to him, ICPC, however, found that the total amount disbursed to institutions from inception to date was about N44,200,933,649.00, while a total of 299 institutions had benefited from the funds released.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students having benefited from the fund.
“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,” he said, adding that the commission would provide further updates as the investigation progresses.
However, the Education Minister stated that if proven true, such actions would constitute a gross violation of public trust and a betrayal of the government’s commitment to equitable access to education.
“In response, the Ministry is convening an urgent meeting on May 6, 2025, with the Vice Chancellors of the affected universities and the Managing Director of NELFUND.
“The meeting will aim to thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.
“To reinforce this effort, the Ministry, in collaboration with the Athena Centre, will launch a compliance-tracking initiative and a countdown webpage to monitor institutional transparency.
“They will also offer technical assistance and introduce an Annual University Transparency Index to promote accountability and enhance the global relevance of Nigerian universities.
“Additionally, a training program will be organized for Bursars and ICT Heads of universities and polytechnics on the development and maintenance of an open-portal initiative.
“As part of our National Education Sector Reform Initiative (NESRI), governance remains the top pillar of our agenda.
“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately. Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions,” the Minister stated.
He further emphasised that President Bola Tinubu, who established NELFUND as a flagship initiative, made adequate budgetary provisions to support both students and institutions in a fair and transparent manner.
Meanwhile, NELFUND has said that is alarmed by the recent surge of inaccurate, misleading, and dangerously speculative reports circulating in the public space regarding the administration of the student loan scheme.
Director, Strategic Communications, Mrs. Oseyemi Oluwatuyi, making clarifications in a statement on Thursday in Abuja, said the reports, which suggest misappropriation and mismanagement of funds “are entirely false, grossly irresponsible, and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians”.
Oluwatuyi insisted that NELFUND maintains zero-tolerance to corruption and that the reports were a coordinated distortion of facts that undermines public trust, weaponises misinformation, and threatens the credibility of a national intervention still in its infancy.
“We wish to state the following, unequivocally: No funds have been mismanaged, stolen, or are unaccounted for under the current NELFUND student loan scheme.
“The scheme officially launched its student loan application portal in 2024.
“As of today, all institutional fees are paid directly to verified institutions, while upkeep allowances are disbursed to the verified bank accounts of eligible student applicants.
“The figures and funding amounts currently being misrepresented in the public are drawn from entirely different education financing interventions predating NELFUND’S operational commencement.
“They bear no relevance to the current student loan scheme and should not be falsely attributed to this institution.
“NELFUND operates a zero human interface, fully automated loan system that eliminates opportunities for financial misconduct. Every application and disbursement is digitally tracked, time stamped, and verifiable,” Oluwatuyi stated.
She added that the commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering.
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