- Goes After Fraudsters
By Abiola Olawale
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has announced that it has launched an investigation into alleged irregularities in the Student loans under the Nigeria Education Loan Fund (NELFUND).
This is as the agency announced that its preliminary investigation has uncovered a staggering N71.2 billion discrepancy in student loan disbursements.
Recall that the National Orientation Agency had alleged that certain schools, working together with some banks, have purposely delayed payments to students who qualified for loans so they could make money off the situation.
Also, reports have emerged that some universities are allegedly deducting amounts ranging from N3,500 to N30,000 from each student’s institutional fees received through the loan fund.
In a statement on Thursday by the ICPC spokesman, Demola Bakare, the commission stated that its Chairman’s Special Task Force immediately commenced investigations upon receiving the allegations.
The statement reads in part: “The ICPC has commenced a comprehensive investigation into alleged discrepancies surrounding the disbursement of student loans under the NELFUND.
“This action follows a recent media report alleging that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme.
“These institutions were alleged to have made unauthorized deductions ranging from N3,500 to N30,000 from each student’s institutional fees received through the loan fund.
“Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving an unaccounted sum of N71.2 billion.
“The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report.”
Bakare noted that in the course of further investigations, the ICPC discovered that a total of N203.8 billion was received by NELFUND.
Out of this amount, Bakare said, N44,200,933,649.00 had been disbursed.
The statement continued: “Letters of investigation and invitations were dispatched to key stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation, and senior officials from the Central Bank of Nigeria.
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case. According to the Commission, the responses received were critically analyzed, and interviews were conducted with the concerned individuals.
“According to the ICPC, its strength of investigation revealed that the total money received by NELFUND as of March 19, 2023, was N203.8 billion. The breakdown showed that N10 Billion was an allocation from the Federation Allocation Account Committee, N50 billion was from the Economic and Financial Crimes Commission, N71.9B was from the Tertiary Education Trust Fund, while another N71.9 billion was also from the same Tertiary Education Trust Fund.
“ICPC, however, found that the total amount disbursed to institutions from inception to date is about N44,200,933,649.00, while a total of 299 institutions have benefited from the funds released. To date, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students having benefited from the fund.
“The ICPC confirmed that a clear case of discrepancies has been established in the administration of the student loan scheme and announced that its investigation will now extend to beneficiary institutions and individual student recipients, ” the statement added.
