The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a thorough investigation into alleged irregularities in the disbursement of student loans through the Nigeria Education Loan Fund (NELFUND).
In a statement released on Thursday, May 1, 2025, ICPC spokesperson Demola Bakare disclosed that although the Federal Government allocated ₦100 billion for student loans, only ₦28.8 billion reached students across various tertiary institutions.
This investigation was triggered by media reports alleging that 51 tertiary institutions were involved in unauthorized deductions and exploitation under the NELFUND scheme. These institutions reportedly deducted between ₦3,500 and ₦30,000 from each student’s institutional fees funded by the loan.
Preliminary findings uncovered a significant shortfall in the disbursement process, with ₦71.2 billion unaccounted for. In response, the ICPC’s Chairman’s Special Task Force initiated 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 read.
The Chief Executive Officer and Executive Director of NELFUND were also summoned to provide documentation and explanations.
Bakare further revealed, “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 substantial funding, only ₦44.2 billion has reportedly been disbursed to institutions since the fund’s inception.
“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 established. The investigation is now being extended to both beneficiary institutions and individual student recipients.
“Further updates will be provided as the investigation progresses,” the statement added.