The Independent Corrupt Practices Commission (ICPC) has launched a high-profile investigation into the disbursement of Nigeria’s Student Loan Scheme, following the discovery of a staggering ₦71 billion discrepancy in allocated funds.
The probe was initiated after investigative journalists uncovered widespread financial malpractice, with evidence showing 51 universities and polytechnics had allegedly manipulated the NELFUND system for improper gains.
Key Findings
Preliminary investigations have exposed alarming irregularities in the financial records of the National Education Loan Fund (NELFUND) disbursement process. According to official data, while the Federal Government allocated ₦100 billion for the student loan scheme, only ₦28.8 billion was confirmed to have reached beneficiaries, leaving a staggering ₦71.2 billion unaccounted for—raising serious concerns about potential mismanagement or diversion of funds.
The ICPC’s forensic audit has uncovered significant inconsistencies in the administration of the student loan scheme. According to verified records:
- Total Disbursements: ₦44.2 billion has been distributed to beneficiary institutions since the program’s inception
- Institutional Reach: 299 tertiary institutions have received funding under the scheme
- Student Beneficiaries: The funds have reached 293,178 eligible students nationwide
As part of its comprehensive investigation, the ICPC summoned top NELFUND executives for questioning, including:
- The Chief Executive Officer (CEO)
- The Executive Director
Investigation Process:
- Document Submission:
- Both officials were formally requested to:
▪️ Produce all financial records related to loan disbursements
▪️ Provide detailed written explanations for the identified discrepancies
- Both officials were formally requested to:
- Evidence Review:
- The Commission’s forensic team:
▪️ Conducted thorough analysis of submitted documents
▪️ Verified authenticity of provided records
▪️ Cross-referenced data with bank statements and institutional reports
- The Commission’s forensic team:
- Interrogation Phase:
- Intensive interviews were conducted with:
▪️ The CEO regarding overall fund management
▪️ The Executive Director concerning operational disbursement processes - Responses were evaluated against:
▪️ Documentary evidence
▪️ Previous testimonies from other officials
- Intensive interviews were conducted with:
Investigation Outcomes:
- Identified inconsistencies between official statements and financial records
- Established timeline of fund release and distribution
- Pinpointed specific decision points requiring further scrutiny
Next Steps:
- Potential recall of executives for additional clarification
- Expansion of probe to mid-level management staff
- Comparative analysis with testimonies from beneficiary institutions
Official Statement:
“The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has commenced a comprehensive investigation into alleged discrepancies surrounding the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND)” stated the ICPC spokesman Demola Bakare.
Despite anti-corruption campaigns and institutional reforms, Nigeria continues to face entrenched financial malfeasance across critical sectors, most notably in its lucrative oil industry and underfunded education system. These parallel crises of corruption not only drain national resources but also perpetuate inequality and hinder development.
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