ICPC investigates irregularities in student loan disbursement
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has officially launched an extensive investigation into alleged discrepancies in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND).
According to the National Orientation Agency, certain educational institutions, in collaboration with banks, have intentionally delayed loan payments to students eligible for the funds, aiming to profit from the situation.
In a concerning media report, it was alleged that numerous institutions have made unauthorized deductions from each student’s institutional fees received via the loan fund, with amounts ranging from N3,500 to N30,000.
Demola Bakare, the ICPC spokesman, stated, “The ICPC has commenced a comprehensive investigation into alleged discrepancies surrounding the disbursement of student loans under the NELFUND. This action follows recent media reports alleging that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme.”
Initial findings from the ICPC revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly allocated N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving an astonishing unaccounted sum of N71.2 billion.
Bakare added, “In further investigations, we discovered that a total of N203.8 billion was received by NELFUND. Out of this amount, N44,200,933,649.00 had been disbursed, implying that approximately N159.6 billion remains.”
Although the ICPC did not straightforwardly state that this amount is missing, Bakare acknowledged that the findings point to considerable discrepancies in the administration of the student loan program.
In response to the situation, invitations for documentation and explanations were sent to crucial stakeholders, including the Accountant General of the Federation and the Chief Executive Officer of NELFUND.
“According to our investigations, the total money received by NELFUND as of March 19, 2023, was N203.8 billion, with 299 institutions benefiting from approximately N44.2 billion disbursed to 293,178 students,” Bakare confirmed.
The ICPC has vowed to continue its investigation, which will now extend to beneficiary institutions and individual student recipients.
Source: PUNCH
