ICPC probes Institutions over NELFUND alleged illegal deductions; N71.2bn unaccounted funds

…Says no fraud established yet, extends investigation to institutions, students

By [Reporter’s Name], Abuja

Background of the probe

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a comprehensive investigation into alleged irregularities in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND).

This follows media reports alleging that 51 tertiary institutions were implicated in unauthorised deductions from funds disbursed to students under the loan scheme.

According to the reports, the institutions made illegal deductions ranging from N3,500 to N30,000 from each student’s institutional charges paid via NELFUND.

Discrepancy in disbursement figures

Further findings raised eyebrows over the transparency of the disbursement process. While the Federal Government was reported to have released N100 billion for the student loan scheme, only N28.8 billion was confirmed as reaching the students, leaving an unaccounted N71.2 billion.

In light of this, the ICPC said its Chairman’s Special Task Force immediately swung into action, issuing letters of inquiry and summoning key stakeholders. These include the Director General of the Budget Office, the Accountant General of the Federation, and senior officials from the Central Bank of Nigeria.

NELFUND, CBN, others summoned

Also invited were the Chief Executive Officer and Executive Director of NELFUND, who were asked to submit detailed documentation and clarify issues relating to fund allocation and disbursement.

The Commission, after analysing the responses and conducting interviews, disclosed that as of March 19, 2024, NELFUND had received a total of N203.8 billion.

Breakdown of funds received

The breakdown includes:

• N10 billion from the Federation Allocation Account Committee (FAAC)
• N50 billion from the Economic and Financial Crimes Commission (EFCC)
• N71.9 billion from the Tertiary Education Trust Fund (TETFund)
• Another N71.9 billion from TETFund (second tranche)

Despite this, the ICPC confirmed that only N44.2 billion has been disbursed so far to 299 tertiary institutions, covering a total of 293,178 student beneficiaries.

No clear fraud – yet

The ICPC, however, stated that no clear evidence of fraud has been established in the administration of the scheme.

“The Commission’s findings so far have not confirmed any concrete evidence of financial misappropriation,” a statement from the agency read.

Scope of probe widens

Despite this, the ICPC has expanded the investigation to scrutinise the beneficiary institutions and individual students to ensure full accountability.

The Commission said further updates would be made public as investigations continue.