THE Nigerian Education Loan Fund (NELFUND) has denied allegations of fund mismanagement, following gaps identified by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) in its disbursements of student loans.
In a statement signed by its Director of Strategic Communications, Oseyemi Oluwatuyi, on Thursday, May 1, the agency said no money had been misappropriated, stolen, or unaccounted for by the Fund.
Responding to what it described as a “coordinated distortion of facts,” NELFUND stated that all disbursements were fully automated, time-stamped, and verifiable, with zero human interference in its loan application process.
Recall that the ICPC had earlier today revealed discrepancies in funds disbursed by NELFUND. The anti-corruption agency also disclosed the amount received by NELFUND since its inception.
While NELFUND claimed to have disbursed N53.8 billion to students for institutional fees and upkeep allowances in its latest report released on Friday, April 25, the ICPC said only N44.2 billion had been disbursed so far.
A breakdown of N53.8 billion, which the organisation said it disbursed, showed that N30.17 billion was allocated for institutional fees, while N23.65 billion was earmarked for student upkeep.
However, the ICPC’s investigation of NELFUND’s activities revealed that the total money received by NELFUND was N203.8 billion.
The ICPC said it found that the total amount disbursed by NELFUND to institutions from inception was about N44,200,933,649.00.
The ICPC also said 299 institutions benefited from the loan scheme, contradicting NELFUND’s report of 271 institutions listed on its portal.
Dismissing the ICPC findings, NELFUND stated that ICPC claims stemmed from confusion between NELFUND and older education financing mechanisms handled by different government bodies.
“The figures and funding amounts currently being misrepresented in the public are drawn from entirely different education financing interventions predating NELFUND’s operational commencement. They bear no relevance to the current student loan scheme and should not be falsely attributed to this institution.
“NELFUND operates a zero human interface, fully automated loan system that eliminates opportunities for financial misconduct. Every application and disbursement is digitally tracked, time-stamped, and verifiable.
“Our commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering. We have complied fully with every request for information and will continue to uphold the highest standards of public accountability,” NELFUND added.
The conflicting figures came amid a report by Guardian that exposed how at least 51 institutions were allegedly imposing illegal charges ranging from N3,500 to N30,000 on student loans.
The report said both NELFUND and the National Orientation Agency (NOA) accused these institutions of deceptive practices, alleging that they collected institutional fees from the government without fully passing them on to students.
The institutions were also accused of a lack of transparency, including failing to disclose disbursement records.
At some of these universities, students reported that additional fees were imposed without clear explanations, while others claimed they were denied refunds for fees paid before NELFUND disbursed the funds.
Reacting to this, the ICPC said it had a comprehensive investigation into alleged discrepancies surrounding the disbursement of the student loans.
The commission added that 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.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M