Education

FG Summons Vice Chancellors as ICPC Probes Alleged Mismanagement in Student Loan Disbursements

Published by Tope Fakinlede on May 3rd, 2025.

FG Summons Vice Chancellors as ICPC Probes Alleged Mismanagement in Student Loan Disbursements

Bola Ahmed Tinubu, FRN President

The Federal Government has launched an investigation into claims of unauthorized deductions from the Nigerian Education Loan Fund (NELFUND), prompting the Ministry of Education to summon Vice Chancellors from affected institutions for a high-level meeting on May 6. This follows a parallel probe by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which has flagged potential irregularities in the distribution of the student loan funds.

The ICPC revealed that out of the N203.8 billion allocated to NELFUND, only N44.2 billion has been disbursed to 293,178 students across 299 institutions. The commission is investigating allegations that over 50 tertiary institutions unlawfully deducted amounts ranging from N3,500 to N30,000 from students’ fees paid via the loan scheme.

Education Minister, Dr. Olatunji Alausa, described the situation as deeply troubling and a potential breach of public trust. He emphasized that any unauthorized deductions run counter to the principles on which NELFUND was founded and vowed that appropriate actions will be taken against any institutions found guilty.

According to a statement from the Ministry’s Director of Press and Public Relations, Mrs. Folasade Boriowo, the urgent meeting aims to hold institutions accountable and reinforce financial discipline in the sector. The Ministry also plans to launch a compliance-tracking system in collaboration with the Athena Centre, alongside an Annual University Transparency Index to ensure better accountability going forward.

ICPC’s preliminary investigation, led by its Chairman’s Special Task Force, revealed that while N203.8 billion had been received by NELFUND as of March 19, only a fraction of the funds had been disbursed to students. Stakeholders such as the Budget Office, the Accountant-General, and CBN officials have been invited to provide clarification, alongside NELFUND’s leadership.

Meanwhile, NELFUND has rejected the allegations, calling them false and damaging. In a statement, Mrs. Oseyemi Oluwatuyi, Director of Strategic Communications, insisted that no funds have been misused or remain unaccounted for under the current student loan framework. She explained that the figures being circulated are likely from past education interventions, unrelated to the new scheme.

Oluwatuyi reaffirmed NELFUND’s commitment to transparency and stated that the scheme, which began full operations in 2024, uses a fully automated and traceable system for disbursement. She emphasized that student payments are made directly to verified institutions and students’ personal accounts, leaving no room for human interference.

Both the Ministry of Education and NELFUND maintain that the scheme is a key initiative of President Bola Tinubu’s administration, aimed at improving access to higher education. As investigations continue, the government has pledged to ensure that justice is served and public trust restored.