The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a comprehensive investigation into alleged irregularities in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND).
The probe follows allegations from the National Orientation Agency (NOA) that some tertiary institutions, in collusion with banks, deliberately delayed the release of funds to students in order to profit from the situation.
A subsequent media report claimed that at least 51 institutions made unauthorized deductions ranging from ₦3,500 to ₦30,000 from each student’s institutional fees, which were processed through the loan scheme.
In a statement released on Thursday, ICPC spokesperson Demola Bakare said the commission’s Chairman’s Special Task Force had immediately commenced an investigation upon receiving the complaints.
Preliminary findings revealed a major discrepancy: although the Federal Government reportedly allocated ₦100 billion to the student loan scheme, only ₦28.8 billion had initially been disbursed to students—leaving over ₦71 billion unaccounted for at the time.
Further investigation showed that a total of ₦203.8 billion had actually been received by NELFUND as of March 19, 2023. This includes ₦10 billion from the Federation Allocation Account Committee, ₦50 billion from the Economic and Financial Crimes Commission, and two separate tranches of ₦71.9 billion from the Tertiary Education Trust Fund (TETFund).
Of that amount, only ₦44.2 billion has so far been disbursed to 299 institutions, benefiting 293,178 students—leaving an unutilized balance of about ₦159.6 billion. While the ICPC did not explicitly state that the remaining funds are missing, it confirmed that a “clear case of discrepancies” exists in the administration of the scheme.
As part of the investigation, letters of inquiry and invitations were sent to key officials, including the Director-General of the Budget Office, the Accountant General of the Federation, and senior officials of the Central Bank of Nigeria. The Chief Executive Officer and Executive Director of NELFUND have also been summoned to provide relevant documentation.
Bakare stated that responses and documents are being critically analyzed, and the investigation will now extend to both recipient institutions and individual student beneficiaries.
The ICPC emphasized that the aim is to ensure transparency, accountability, and integrity in the student loan program, which was established to alleviate the financial burdens faced by students across Nigeria.
