The Nigerian Education Loan Fund (NELFUND) has denied reports of unaccounted funds discrepancy under the current NELFUND student loan scheme.
The rebuttal on Thursday comes hours after the Independent Corrupt Practices and Other Related Offences Commission (ICPC) commenced a comprehensive probe into alleged discrepancies surrounding the disbursement of student loans under the NELFUND, amid concerns over an unaccounted sum of N71.2 billion.
In a statement signed by Mrs. Oseyemi Oluwatuyi, Director, Strategic Communications, NELFUND, the fund claims reports of alleged misappropriation and mismanagement of funds are entirely false and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians.
NELFUND’s position on the alleged Discrepancy
- NELFUND maintains that “No funds have been mismanaged, stolen, or are unaccounted for under the current NELFUND student loan scheme.”
- It explained that the scheme officially launched its student loan application portal in 2024, adding that 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, ” the official added.
The official further highlighted that 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, ” the official added.
According to the statement, NELFUND’s commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering.
“We have complied fully with every request for information and will continue to uphold the highest standards of public accountability, ” it added.
- NELFUND said it remains focused, undeterred, and committed to the transparent delivery of this national mandate, adding that the future of Nigeria’s youth is too important to be hijacked by misinformation.
Backstory
The ICPC earlier disclosed in a statement on Thursday, stating that the Chief Executive Officer of NELFUND, Akintunde Sawyerr, officials of the Central Bank of Nigeria, and others have been invited to present their side of the story about the alleged discrepancy associated with the student loans.
- This action follows a recent media report alleging that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme.
- These institutions were accused of making unauthorized deductions ranging from N3,500 to N30,000 from each student’s institutional fees paid through the loan fund.
- Preliminary findings by the ICPC revealed significant gaps in the financial records of the disbursement process.
- The Commission emphasized that while the Federal Government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving an unaccounted balance of N71.2 billion.
The ICPC maintained that the situation clearly reflects discrepancies in the administration of the student loan scheme.
It further announced that the investigation will now extend to beneficiary institutions and individual student recipients.
The Commission assured that further updates will be provided as the investigation progresses.
What You Should Know
NELFUND was signed into law under the current administration of President Bola Tinubu on April 3, 2024, marking a historic step toward ensuring sustainable higher education and functional skill development for Nigerian students and young people.
- The primary objective of NELFUND is to provide financial support to qualified Nigerians for tuition, fees, and living expenses at approved tertiary and vocational institutions within Nigeria.
- The fund is governed by a board of directors comprising representatives from relevant ministries, regulatory bodies, and participating agencies—including the Federal Ministries of Finance and Education—while the management team is led by Managing Director Akintunde Sawyerr, who oversees daily operations.
As of February 3, 2025, NELFUND announced it had disbursed a total of N20,074,050,000 in institutional fees, benefiting no fewer than 192,906 students across various tertiary institutions in the country.
The Fund also dismissed reports alleging that over N104 billion had been disbursed under the Student Loan Scheme at the time.
