ICPC launches investigation; Adeyanju calls for arrests over alleged N71.2bn gap
Abuja —The Federal Government has launched a probe into the alleged mismanagement of funds disbursed under the Nigeria Education Loan Fund (NELFUND), following reports of unauthorized deductions and missing funds in the student loan scheme.
The Ministry of Education, in a statement issued by the Director of Press and Public Relations, announced an emergency meeting scheduled for May 6, 2025. The meeting will involve vice-chancellors of the affected institutions and the Managing Director of NELFUND.
This follows a media report alleging that 51 tertiary institutions illegally deducted amounts ranging from ₦3,500 to ₦30,000 from institutional fees received through the loan fund.
Preliminary findings indicate that while the Federal Government released ₦100 billion for the scheme, only ₦28.8 billion was reportedly disbursed to students, leaving an unaccounted balance of ₦71.2 billion.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) confirmed that its Special Task Force began investigations immediately after receiving the report. However, the agency later clarified that no discrepancies have been formally established in the disbursement process. The earlier confusion, ICPC noted, stemmed from a typographical error in its initial statement, which omitted the word “not.”
“ICPC wishes to clarify that a clear case of discrepancies in the student loan disbursements has not been established at this stage,” said spokesperson Demola Bakare.
The Commission added that its investigation has now been expanded to include beneficiary institutions and individual student recipients. Letters of investigation have been sent to key officials, including the Director-General of the Budget Office, the Accountant General of the Federation, senior Central Bank of Nigeria (CBN) personnel, and top NELFUND executives.
Reacting to the controversy, NELFUND described the reports of misappropriation and missing funds as “grossly misleading and damaging.” In a statement, Director of Strategic Communications, Oseyemi Oluwatuyi, said the figures being cited in the public domain were drawn from previous education funding initiatives that predate NELFUND’s operations.
“This is a coordinated distortion of facts that undermines public trust, weaponises misinformation, and threatens the credibility of a national intervention still in its infancy,” he said.
Minister of State for Education, Dr. Olatunji Alausa, described the allegations as “very disturbing” and warned that any institution found guilty of unauthorized deductions or financial malpractice would face appropriate sanctions.
“Such actions, if proven, constitute a gross violation of public trust and undermine the core objective of NELFUND—ensuring equitable access to education,” the minister said.
Meanwhile, human rights lawyer and activist, Deji Adeyanju, called for the arrest and prosecution of any government official involved in the alleged mismanagement of funds.
“At a time when millions of Nigerian students struggle to access quality education, the mismanagement of such a vital fund is unacceptable and a betrayal of public trust,” Adeyanju said in a statement issued in Abuja.
He commended the ICPC for its swift response and urged the commission to conduct a thorough investigation. “Only through decisive action and justice can public confidence be restored in the student loan scheme,” he added.
