ICPC probes ₦71billion missing from Student Loan scheme

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a formal investigation into irregularities surrounding the disbursement of student loans, stating that ₦71.2 billion is unaccounted for in the scheme.

This action follows reports that several higher education institutions had been involved in unauthorised deductions and exploitation linked to the Nigeria Education Loan Fund (NELFUND). Allegations suggest that these institutions deducted sums ranging from ₦3,500 to ₦30,000 from each student’s institutional fees funded by NELFUND. In a statement released on Thursday by spokesperson Demola Bakare, the ICPC said: “Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released ₦100 billion for the scheme, only ₦28.8 billion was disbursed to students, leaving an unaccounted sum of ₦71.2 billion.” The anti-corruption agency confirmed that its Chairman’s Special Task Force immediately initiated action upon receiving the report. Letters of inquiry and invitations were sent to key stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation, and senior personnel at the Central Bank of Nigeria. Top officials from NELFUND, including its Chief Executive Officer and Executive Director, were also summoned to provide relevant documentation and clarification. The Commission reviewed the responses and conducted interviews with the involved parties. As of March 19, 2024, ICPC’s investigation revealed that NELFUND had received a total of ₦203.8 billion: ₦10 billion from the Federation Allocation Account Committee, ₦50 billion from the Economic and Financial Crimes Commission, and ₦71.9 billion (twice) from the Tertiary Education Trust Fund. To date, only ₦44.2 billion has been disbursed to 299 institutions, with 293,178 students having benefited. The ICPC has now confirmed that a clear case of financial discrepancies exists in the handling of the loan scheme. Its investigation will expand to cover recipient institutions and individual student beneficiaries. Further updates will be provided as the probe progresses.