The ICPC has commenced a thorough investigation into alleged illegal deductions and a significant unaccounted sum of N71.2 billion in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND)

[dropcap]T[/dropcap]he Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a comprehensive investigation into alleged irregularities surrounding the disbursement of funds under the Nigeria Education Loan Fund (NELFUND).

Also read: Student loan: NELFUND postpones application for state varsities

This action follows recent media reports implicating at least 51 tertiary institutions in unauthorized deductions and exploitation related to the student loan scheme.

The implicated institutions are alleged to have made illegal deductions ranging from N3,500 to N30,000 from the institutional fees of students who received funds through NELFUND.

Preliminary findings by the ICPC have revealed a significant discrepancy in the financial records of the NELFUND disbursement process.

While the Federal Government reportedly released N100 billion for the scheme, the ICPC’s investigation indicates that only approximately N44.2 billion has been disbursed to institutions to date, benefiting 293,178 students across 299 institutions. This leaves a substantial unaccounted sum of N71.2 billion.

A clear case of discrepancies has been established in the administration of the student loan scheme and our investigation will now extend to beneficiary institutions and individual student recipients,” stated the ICPC.

Upon receiving the initial media reports, the ICPC Chairman’s Special Task Force immediately initiated investigative measures.

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.

Furthermore, the Chief Executive Officer and Executive Director of NELFUND were summoned to provide relevant documentation and explanations.

The ICPC confirmed that the responses received have undergone critical analysis, and interviews have been conducted with the individuals involved.

The ICPC’s investigation has revealed that the total amount received by NELFUND as of March 19, 2023, was N203.8 billion, sourced from various allocations including the Federation Allocation Account Committee (N10 billion), the Economic and Financial Crimes Commission (N50 billion), and the Tertiary Education Trust Fund (N143.8 billion).

Also read: Lawyer petitions EFCC, ICPC, accuses Ogun SSG, Tokunbo Talabi, of money laundering

The Commission has now confirmed the existence of clear discrepancies in the administration of the student loan scheme and announced that its investigation will be broadened to include beneficiary institutions and individual student recipients to ascertain the full extent of the alleged irregularities.