ICPC Probes NELFund Over ‘Discrepancy’ In Student Loan Disbursements

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched an investigation into suspected irregularities in how student loans were distributed through the Nigeria Education Loan Fund (NELFUND).

The move comes after the National Orientation Agency (NOA) raised concerns that some universities, in collaboration with certain banks, may have intentionally delayed loan disbursements to students in order to profit from the situation.

Media reports also claimed that some institutions were making unauthorized deductions of between ₦3,500 and ₦30,000 from student loan payments.

In a statement released on Thursday by ICPC spokesman Demola Bakare, the commission said it has began looking into the matter through its Chairman’s Special Task Force.

Bakare said initial findings showed that although the federal government allocated ₦100 billion to the student loan program, only ₦28.8 billion had actually reached students, leaving ₦71.2 billion unaccounted for.

The statement read, “The ICPC has commenced a comprehensive investigation into alleged discrepancies surrounding the disbursement of student loans under the NELFUND.

“This action follows a recent media report alleging that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme.

“These institutions were alleged to have made unauthorized deductions ranging from N3,500 to N30,000 from each student’s institutional fees received through the loan fund.

“Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving an unaccounted sum of N71.2 billion.

“The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report.”

He also revealed that ICPC later found that NELFUND had received a total of ₦203.8 billion from various sources, including ₦10 billion from the Federation Account, ₦50 billion from the EFCC, and ₦143.8 billion in two installments from TETFund.

Bakare said that out of the total funds received, only ₦44.2 billion had been disbursed to 299 institutions, benefitting just over 293,000 students. That means more than ₦159 billion remains unused, though the ICPC has not stated that the money is missing.

To get to the bottom of the issue, ICPC said it has invited top officials, including the Director-General of the Budget Office, the Accountant-General of the Federation, and leaders from the Central Bank of Nigeria.

The heads of NELFUND were also called to submit documents and explain how the funds were handled.

Bakare 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.

“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case. According to the Commission, the responses received were critically analyzed, and interviews were conducted with the concerned individuals.

“According to the ICPC, its strength of investigation revealed that the total money received by NELFUND as of March 19, 2023, was N203.8 billion. 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 approximately N44.2 billion, with 293,178 students having benefited from the fund.

“The ICPC confirmed that a clear case of discrepancies has been established in the administration of the student loan scheme and announced that its investigation will now extend to beneficiary institutions and individual student recipients, ” the statement added.

KanyiDaily recalls that Vice Admiral Usman Jibrin (rtd.), and the Deputy Commandant of the Nigerian Security and Civil Defence Corps (NSCDC), was recently arrested by the ICPC.