NELFund denies alleged corruption, misappropriation of student loan funds

The Nigerian Education Loan Fund (NELFund) has refuted allegations of misappropriation and mismanagement of student loan funds.

In a statement on  Thursday, Oseyemi Oluwatuyi, the fund’s director of strategic communications, said some media reports are circulating “unverified, context-free, and inflammatory” claims suggesting that it mismanaged student loan monies.

Oluwatuyi said these allegations are “false, grossly irresponsible, and damaging” to the integrity of the scheme.

TheCable earlier reported that the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has commenced an investigation into alleged discrepancies in the disbursement of student loan funds.

A report had claimed that 51 tertiary institutions were involved in illegal deductions and exploitation related to the NELFund scheme.

The  ICPC said that of the N100 billion released by the federal government reportedly for the student loan scheme, only N28.8 billion had been disbursed to students as of the time of the report, leaving about N71.2 billion unaccounted for.

It noted that its special task force has invited key stakeholders for questioning, including the director general of the budget office, the accountant general of the federation, and officials of the Central Bank of Nigeria.

Akintunde Sawyerr, NELFund’s managing director, has also been invited to provide relevant documentation.

The ICPC said N203.8 billion had been received by NELFund as of March 19, 2024, from multiple channels.

These include allocations from the Federation Allocation Account Committee (FAAC), the Economic and Financial Crimes Commission (EFCC), and the Tertiary Education Trust Fund (TETFund).

Of that figure, ICPC said N44.2 billion had been disbursed to 299 beneficiary institutions, covering 293,178 students.

Oluwatuyi said no funds have been stolen under the current student loan scheme, which officially launched its application portal in 2024.

“All institutional fees are paid directly to verified institutions, while upkeep allowances go into the verified bank accounts of eligible students,” she said.

“The reports circulating in the public space are based on outdated figures and previous interventions that predate our operations.”

The communications director said NELFund operates an automated loan system to eliminate the possibility of financial misconduct.

Every application and disbursement, according to her, is digitally tracked, time-stamped, and verifiable.