The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has initiated a comprehensive investigation into alleged irregularities in the distribution of student loans through the Nigeria Education Loan Fund (NELFUND).
In a statement issued on Thursday, May 1, 2025, ICPC spokesperson Demola Bakare revealed that while the Federal Government allocated ₦100 billion for student loans, only ₦28.8 billion has actually reached students across various tertiary institutions.
This investigation was prompted by media reports suggesting that 51 tertiary institutions were implicated in unauthorized deductions and exploitation related to the NELFUND scheme. These institutions reportedly deducted amounts ranging from ₦3,500 to ₦30,000 from each student’s institutional fees that were covered by the loan.
Preliminary findings have uncovered a significant shortfall in the disbursement process, with ₦71.2 billion remaining unaccounted for. In light of this, the ICPC’s Chairman’s Special Task Force has launched an immediate inquiry.
“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 detailed.
The Chief Executive Officer and Executive Director of NELFUND have also been summoned to provide documentation and explanations concerning the disbursement process.
Bakare further explained, “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 ₦203.8 billion as of March 19, 2024.
“The breakdown showed that ₦10 billion was an allocation from the Federation Allocation Account Committee, ₦50 billion was from the Economic and Financial Crimes Commission, ₦71.9 billion was from the Tertiary Education Trust Fund, while another ₦71.9 billion was also from the same Tertiary Education Trust Fund.”
Despite this significant funding, only ₦44.2 billion has been disbursed to institutions since the fund’s establishment.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately ₦44.2 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 identified, and the investigation now extends to both beneficiary institutions and individual student recipients.
“Further updates will be provided as the investigation progresses,” the statement concluded.
