The Independent Corrupt Practices and Other Related Offences Commission (ICPC) is investigating alleged discrepancies in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND). The investigation extends to beneficiary institutions and individual student recipients following media reports of illegal deductions and exploitation involving at least 51 tertiary institutions. These institutions allegedly made unauthorized deductions ranging from N3,500 to N30,000 from student fees received through the loan fund.

Initial findings revealed financial record gaps in the disbursement process. While the federal government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving N71.2 billion unaccounted for. ICPC's Chairman’s Special Task Force initiated investigations, dispatching letters and invitations 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 Chief Executive Officer and Executive Director of NELFUND were also invited to provide relevant documentation and explanations.

ICPC's investigation revealed that NELFUND received N203.8 billion as of March 19, 2024, with funds coming from the Federation Allocation Account Committee, the Economic and Financial Crimes Commission, and the Tertiary Education Trust Fund. However, only approximately N44.2 billion has been disbursed to 299 institutions, benefiting 293,178 students. ICPC stated that a clear case of discrepancies has not been established in the administration of the student loan scheme, but the investigation will continue.

Rights activist Deji Adeyanju has called for the arrest and prosecution of those culpable in the alleged N71.2 billion student loan fraud, describing the discrepancies as disappointing, especially given the struggles of Nigerian students to afford quality education. He commended the ICPC for launching the investigation and urged them to identify and prosecute all involved parties, emphasizing the need for decisive action to restore public confidence in the student loan scheme.

NELFUND has affirmed its commitment to transparency and accountability and remains open for scrutiny. The Ministry of Education announced an urgent meeting with vice-chancellors of affected universities and the Managing Director of NELFUND on May 6, 2025, to investigate the alleged illegal deductions and exploitation. NELFUND expressed alarm over inaccurate and misleading reports circulating about the student loan scheme's administration, dismissing claims of misappropriation and mismanagement of funds as false and damaging.

The Ministry of Education has expressed deep concern over the reports of unauthorized deductions from funds disbursed under the NELFUND scheme, with the Minister, Dr. Olatunji Alausa, describing the allegations as very disturbing and extremely concerning. He emphasized that such actions, if proven true, would constitute a gross violation of public trust. The ministry assured Nigerians that the matter would be thoroughly investigated, and anyone found culpable would face appropriate sanctions.

Adeyanju reiterated his disappointment in the disbursement of student loans, urging the ICPC to leave no stone unturned in identifying all individuals or institutions involved. He emphasized that only through decisive action and justice can public confidence in the student loan scheme be restored.