N71.2bn Missing From N100bn Student Loan Fund Uncovered

News Update

THE Independent Corrupt Practices and Other Related Offences Commission (ICPC) has uncovered a major financial discrepancy in the disbursement of student loan funds.

Out of the N100 billion reportedly released by the Federal Government to universities, only N28.8 billion was actually disbursed to students, leaving N71.2 billion unaccounted for.

ICPC spokesperson, Demola Bakare, disclosed this on Thursday in Abuja, revealing that several university managements, who were custodians of the funds, are suspected of diverting the money.

Key stakeholders, including the Director-General of the Budget Office, the Accountant-General of the Federation, officials from the Central Bank of Nigeria, and top executives of NELFUND, have been invited for questioning and to present relevant documentation.

The development follows earlier concerns raised by the Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu, who accused over 51 tertiary institutions of sabotaging the Tinubu administration’s student loan scheme.

According to him, these institutions made unauthorized deductions of between N3,500 and N30,000 from students’ institutional fees funded through NELFUND.

Bakare confirmed that the ICPC has launched a full investigation, with the Chairman’s Special Task Force already in action. Preliminary findings indicate serious discrepancies in financial records.

According to the ICPC, NELFUND received a total of N203.8 billion by March 19, 2024, from various sources, including FAAC, EFCC, and TETFUND. Despite this, only about N44.2 billion has been disbursed to 299 institutions, benefiting over 293,000 students.

The ICPC said it would extend its investigation to the institutions and students involved and promised to provide regular updates as the probe continues.