The Federal Ministry of Education has opened an investigation into alleged illegal deductions from the institutional fees paid by the Nigerian Educational Loan Fund (NELFUND) for beneficiaries of the Student Loan scheme.
Education Minister Dr. Tunji Alausa described the infractions in the loan disbursement as “very disturbing and extremely concerning.”
Also yesterday, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) announced that its men had launched a probe in the alleged infractions in the Student Loan management.
But the NELFUND has insisted that no funds have been mismanaged, stolen, or unaccounted for under the scheme.
President Bola Ahmed Tinubu introduced the Student Loan scheme to enable easy access to education by indigent students.
So far, N53 billion has been disbursed by NELFUND to students.
Upon approval of application, NELFUND pays directly the fees of the student to the university account while the student gets N20,000 monthly for upkeep.
But National Orientation Agency (NOA) Director-General Lanre Isa-Onilu raised the alarm about certain untoward activities around the payment in some of the universities.
This was dismissed as a product of minor technical glitches.
According to a statement by the Ministry’s Press and Public Relations Director, Boriowo Folasade, the minister has summoned an urgent meeting for May 6 with the vice chancellors of the affected institution and NELFUND’s Managing Director, Akintunde Sawyerr.
The statement said that the meeting will “thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the education sector.”
The minister warned that unauthorised deductions from student loans not only breach financial ethics but also undermine the very foundation upon which NELFUND was established.
He stated that if proven true, such actions would constitute a gross violation of public trust and a betrayal of the government’s commitment to equitable access to education.
The statement reads: “To reinforce this effort, the Ministry, in collaboration with the Athena Centre, will launch a compliance-tracking initiative and a countdown webpage to monitor institutional transparency.
“They will also offer technical assistance and introduce an Annual University Transparency Index to promote accountability and enhance the global relevance of Nigerian universities.
“Additionally, a training programme will be organised for Bursars and ICT Heads of universities and polytechnics on the development and maintenance of an open-portal initiative.
“As part of our National Education Sector Reform Initiative (NESRI), governance remains the top pillar of our agenda.
“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately.
“Let me assure Nigerians that this matter will not be swept under the carpet. Anyone found culpable will face appropriate sanctions.
“NELFUND was created to expand students’ access to high quality education and to support universities financially in a legal and sustainable way. Any attempt to exploit this fund is unacceptable and contradicts the President’s vision for inclusive human capital development.”
The minister reaffirmed the administration’s commitment to protecting public funds and ensuring that students receive the full benefits of all government education support schemes.
Confirming ICPC’s investigation of the alleged discrepancies in the disbursement of loans to students, ICPC spokesperson Debola Bakare said preliminary findings revealed a significant gap in the financial records of the disbursement process.
The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report.
He said 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 (CBN).
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case, the statement said.
According to the Commission, the responses received were critically analysed and interviews were conducted with the concerned individuals.
On the strength of its investigation, ICPC revealed that the total money received by NELFUND as of March 19, 2023, was N203.8 billion.
The statement further reads: “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, N71.9B was from the Tertiary Education Trust Fund, while another N71.9 billion was also from the same Tertiary Education Trust Fund.
“ICPC, however, found that the total amount disbursed to institutions from inception to date is about N44,200,933,649.00, while a total of 299 institutions have benefited from the funds released.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approx
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
