Controversy Trails Students Loan, NELFUND Says Fund Intact, ICPC, FG Summons Indicted Institutions

By Ayodele Oni

As controversy over students loan persists, Nigerian Education Loan Fund, (NELFUND) has denied the alleged mismanagement of no funds under the current student scheme.

 NELFUND also said no amount of the funds has been mismanaged, stolen or unaccounted for.

 Earlier on Thursday, the Independent Corrupt Practices and Other Related Offences Commission alleged that out of N100 billion the government released for the student loan, only N28.8 billion was disbursed while N71.2bn was diverted.

Already, the Federal Government has summoned Vice Chancellors of universities and the Managing Director of the Nigerian Education Loan Fund (NELFUND) implicated in the disturbing allegations of corruption, diversions and unauthorised deductions rocking the less than two – year – old student loans scheme introduced by President Bola Ahmed Tinubu’s administration.

 The affected universities and NELFUND handlers were summoned to an emergency meeting scheduled for May 6, 2025.

 The planned meeting seeks to thoroughly investigate the matter, ensure full accountability, and reaffirm the Ministry’s zero-tolerance policy toward financial malpractice in the nation’s education sector.

Minister of Education, Dr. Maruf Olatunji Alausa, described the unauthorized activities around the loan scheme as extremely concerning, vowing that the government would spare nothing in its quest to uphold transparency, protect public funds, and ensure students receive the full benefits of the initiative meant for them

ICPC also clarified that it had invited NELFUND and some managements of universities for investigation.

 But in a swift reaction, NELFUND, in a statement by its Director, Strategic Communications, Oseyemi Oluwatuyi, said it was alarmed by the surge of “inaccurate, misleading, and dangerously speculative reports circulating in the public space” regarding the administration of the student loan scheme.

 According to the statement, “These reports, which suggest misappropriation and mismanagement of funds, are entirely false, grossly irresponsible, and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians.

 “This is a coordinated distortion of facts that undermines public trust, weaponizes misinformation, and threatens the credibility of a national intervention still in its infancy.

 “We wish to state the following, unequivocally: No funds have been mismanaged, stolen, or are unaccounted for under the current NELFUND student loan scheme.

“The scheme officially launched its student loan application portal in 2024. As of today, all institutional fees are paid directly to verified institutions, while upkeep allowances are disbursed to the verified bank accounts of eligible student applicants.

 “The figures and funding amounts currently being misrepresented in the public are drawn from entirely different education financing interventions predating NELFUND’s operational commencement. They bear no relevance to the current student loan scheme and should not be falsely attributed to this institution.

 “NELFUND operates a zero human interface, fully automated loan system that eliminates opportunities for financial misconduct. Every application and disbursement is digitally tracked, time stamped, and verifiable.

 “Our commitment to transparency and cooperation with oversight agencies, including the ICPC, is total and unwavering. We have complied fully with every request for information and will continue to uphold the highest standards of public accountability.

 “The circulation of unverified, context-free, and inflammatory claims at this critical stage of implementation is not only reckless, it is a deliberate sabotage of a nationally significant, people centered programme designed to expand access to tertiary education and economic mobility.”