The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a thorough investigation into discrepancies and irregularities surrounding the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND). This action follows formal petitions from NELFUND and the National Orientation Agency (NOA), spurred by media reports alleging that at least 51 tertiary institutions were involved in illegal deductions and exploitation related to the NELFUND scheme.

Preliminary findings by the ICPC have revealed significant gaps in the financial records. While the Federal Government reportedly released ₦100 billion for the program, only ₦28.8 billion was disbursed to students, leaving a substantial ₦71.2 billion unaccounted for. The ICPC's investigation has expanded to include specific institutions and individual recipients, aiming to uncover the full extent of the malfeasance.

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 (CBN), have been summoned. The Chief Executive Officer and Executive Director of NELFUND have also been invited to provide documentation and explanations relevant to the case. As of March 19, 2024, ICPC’s findings indicate that NELFUND received a total of ₦203.8 billion, including ₦10 billion from the Federation Allocation Account Committee, ₦50 billion from the Economic and Financial Crimes Commission (EFCC), and two separate tranches of ₦71.9 billion each from the Tertiary Education Trust Fund (TETFund).

Despite the substantial funds received, only ₦44.2 billion has been disbursed to 299 institutions, benefiting 293,178 students. This discrepancy has raised serious concerns about the management and oversight of the loan scheme. Allegations have also surfaced that some institutions illegally deducted between ₦3,500 and ₦30,000 from student fees disbursed through the loan scheme, further fueling the investigation.

The National Association of Nigerian Students (NANS) has voiced strong concerns, accusing some institutions of diverting student loan funds into personal accounts. NANS cited a report by the NOA indicating collusion between institutions and banks to short-change students. The NOA confirmed it had identified several institutions and banks involved in fraudulent practices, revealing that institutions withheld payments or failed to credit student accounts despite receiving funds from NELFUND.

The House of Representatives Committee on NELFUND has also intervened, pledging to involve the ICPC in monitoring disbursement and ensuring transparency. The ICPC has confirmed its collaboration with the NOA and other relevant agencies to uncover the extent of the fraudulent activities. The investigation aims to ensure that those found guilty face appropriate consequences, safeguarding the integrity of the student loan scheme and protecting the interests of Nigerian students.

NELFUND, established by the Student Loans (Access to Higher Education) Act, 2024, aims to provide loans to Nigerian students for higher education, vocational training, and skills acquisition. The loans are intended to cover tuition fees, academic charges, and upkeep costs, alleviating the financial burden on students and promoting access to education. The ongoing investigation is crucial to restoring public trust in the scheme and ensuring its effective operation.