ICPC Clarifies Statement on Alleged Discrepancies in Nigeria’s Student Loan Scheme

• ICPC initially alleged discrepancies in student loan disbursement, citing unaccounted funds and financial irregularities
• The commission later clarified its statement, retracting claims of established wrongdoing and refocusing investigations on institutions and student beneficiaries
• Government agencies and student bodies now demand greater transparency as concerns over mismanaged loans continue to rise

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has retracted its earlier assertion that discrepancies had been found in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND).

ICPC’s director of Public Enlightenment and Education, Demola Bakare, issued the revised statement on April 1, clarifying that its previous report mistakenly omitted the word “NOT”, thereby creating the erroneous impression that financial irregularities had already been established.

"The impression of diversion and the issue of discrepancies do not exist at this stage," Bakare explained.

"The investigation would have to move into the receiving institutions and persons before any reasonable deductions could be made."

Read also

Nigerians to pay more for NIN corrections as NIMC increases service charge, sets date to start

Student loan investigation focuses on beneficiary institutions

According to Premium Times, despite the clarification, ICPC confirmed that investigations are ongoing, shifting focus towards tertiary institutions and individual student beneficiaries.

The probe was triggered by a formal petition from NELFUND and the National Orientation Agency (NOA).

Preliminary findings had suggested financial irregularities, noting that although the federal government had reportedly released N100 billion, only N28.8 billion had been disbursed to students, leaving N71.2 billion unaccounted for.

ICPC stated that letters of investigation and invitations had been 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, top executives at NELFUND, including its Chief Executive Officer and Executive Director, were invited to provide documentation and explanations.

Allegations of funds diversion by tertiary institutions

Reports indicate that at least 51 tertiary institutions allegedly deducted illegal fees from student loans, ranging from N3,500 to N30,000, while others were accused of diverting or withholding funds meant for students.

Read also

Access, Zenith, UBA, other banks settle N160bn owed to MTN, Airtel, others as new SMS fee begins

The National Association of Nigerian Students (NANS) raised concerns, accusing some institutions of transferring student loan funds into personal accounts instead of crediting the rightful recipients.

NANS Vice President for Inter-Campus and Gender Affairs, Akinbodunse Felicia, referenced findings from NOA, which revealed collusion between institutions and banks in mismanaging disbursements.

She stressed that many students were not informed of funds released in their names, forcing them to pay tuition fees independently.

In response, NELFUND’s Managing Director, Akintunde Sawyerr, acknowledged the corruption allegations, prompting NANS to announce plans for nationwide protests on April 24 to draw the President’s attention.

Government moves to ensure transparency in student loans

The House of Representatives Committee on NELFUND has intervened in the matter, pledging to work alongside ICPC to monitor disbursement processes and prevent financial malpractice.

ICPC confirmed its collaboration with NOA and other agencies to thoroughly investigate the extent of alleged fraudulent practices surrounding the student loan scheme.

Read also

Scam Alert: JAMB breaks silence as website requests payment from candidates who missed 2025 UTME

NELFUND, established under the Student Loans (Access to Higher Education) Act, 2024, provides financial assistance to Nigerian students for higher education, vocational training, and skills acquisition. The loans aim to cover tuition fees, academic charges, and upkeep costs, ensuring accessibility to education.

ICPC re-arraigns professor over fake degree

Legit.ng earlier reported that the Independent Corrupt Practices and Other Related Offences Commission (ICPC) re-arraigned Professor Godwin Igbinoba at the Edo State High Court on charges relating to fraudulent academic certifications and document forgery.

The commission, in a statement published via its official X (formerly Twitter) account on Thursday, confirmed that Mr Igbinoba was brought before Justice A. N. Erhabor in Benin City, where he pleaded not guilty to the three-count charge leveled against him.

Source: Legit.ng