By Deborah Nnamdi
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has initiated an in-depth investigation into suspected mismanagement in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND).
In a statement issued on Thursday, May 1, 2025, ICPC spokesperson Demola Bakare revealed that out of the N100 billion allocated by the Federal Government for student loans, only N28.8 billion was disbursed to students in tertiary institutions.
The probe was prompted by media reports implicating 51 tertiary institutions in unauthorized deductions from students’ institutional charges, ranging from N3,500 to N30,000, despite the costs being covered by the loan scheme.
Preliminary investigations indicate that N71.2 billion remains unaccounted for. As a result, the ICPC’s Chairman’s Special Task Force has launched an urgent inquiry into the matter.
“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,” the statement read.
The Chief Executive Officer and Executive Director of NELFUND were also summoned to provide documentation and explanations.
Bakare further revealed, “The responses received were critically analyzed, and interviews were conducted with the concerned individuals.”
According to the ICPC’s findings, NELFUND had received a total of N203.8 billion as of March 19, 2024.
“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.”
Despite this substantial funding, only N44.2 billion has reportedly been disbursed to institutions since the fund’s inception.
“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.”
The ICPC has confirmed that discrepancies in the administration of the student loan scheme have been established. The investigation is now being extended to both beneficiary institutions and individual student recipients.
“Further updates will be provided as the investigation progresses,” the statement added.
