The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has commenced an in-depth investigation into alleged financial misconduct within the Nigeria Education Loan Fund (NELFUND), following claims of misuse involving ₦100 billion earmarked for student loans.
Initial findings by the commission suggest that out of the ₦100 billion allocated by the Federal Government, only ₦28.8 billion was distributed to students, leaving a staggering ₦71.2 billion unaccounted for. This revelation has sparked concern and anger among stakeholders in the education sector.
The National Orientation Agency (NOA) earlier alleged that some higher institutions, working alongside certain banks, deliberately delayed the release of funds to students in a bid to profit from accrued interest. Furthermore, there have been reports of unauthorized deductions from students’ funds, ranging between ₦3,500 and ₦30,000.
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In a statement issued on Thursday, ICPC spokesperson Demola Bakare revealed that a special task force had been deployed to investigate the irregularities. The team has reportedly dispatched investigation letters and summoned relevant stakeholders, including representatives from the Budget Office, the Central Bank of Nigeria, and the Office of the Accountant General.
Further investigation has shown that NELFUND received ₦203.8 billion as of March 2023. The breakdown of the funds includes ₦10 billion from the Federation Account Allocation Committee (FAAC), ₦50 billion from the Economic and Financial Crimes Commission (EFCC), and ₦143.8 billion from Tertiary Education Trust Fund (TETFUND). However, only ₦44.2 billion has been released to 299 institutions, covering 293,178 student beneficiaries, leaving roughly ₦159.6 billion undistributed.
While the ICPC has not definitively declared the funds missing, Bakare noted that “a clear case of discrepancies” had emerged, prompting the expansion of the probe to include both institutional and individual recipients.
In response, the National Association of Nigerian Students (NANS) expressed outrage and threatened mass protests if the matter is not addressed swiftly. NANS spokesperson Samson Adeyemi described the issue as “an attack on the future of Nigerian students” and called for immediate accountability from those involved.
To address the controversy, the Federal Ministry of Education has scheduled an emergency meeting for May 6, 2025. The gathering will bring together vice-chancellors of the institutions under scrutiny and the Managing Director of NELFUND. The aim is to reinforce transparency and reaffirm the ministry’s commitment to combating financial misconduct.
Meanwhile, the Academic Staff Union of Universities (ASUU), which has long criticized the student loan initiative, said the unfolding scandal only confirms their earlier concerns.
“We saw this coming,” stated ASUU National President, Prof. Victor Osodeke. “We warned it would be another opportunity to loot public funds. Now we’ve been vindicated.”
As the investigation continues, the nation watches closely, with the outcome likely to shape the future of student financial aid and public trust in educational funding.
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