The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has begun a full investigation into allegations that some Nigerian universities and banks are involved in fraudulent activities tied to the federal student loan scheme.
The probe follows complaints that students who qualified for loans under the Nigerian Education Loan Fund (NELFUND) have been denied access to their funds. Some tertiary institutions and banks allegedly withheld or diverted the money, leaving many students stranded.
The scheme, which was launched last year by President Bola Tinubu’s administration with a N35 billion take-off grant, was meant to help students pay tuition, fees, and cover living costs. Under the plan, schools receive tuition fees directly from NELFUND, while students get N20,000 monthly for upkeep.
But findings by the National Orientation Agency (NOA) showed that the process is being sabotaged. According to the NOA, some schools, in collaboration with certain banks, intentionally withheld the funds meant for students.
Paul Odenyi, Deputy Director of Communications and Media at NOA said, “This is just a pilot phase. We have asked our officers to do it across the country so that we will be sure where these things are happening.”
The ICPC confirmed it has started an investigation based on a petition received from the NOA. Demola Bakare, spokesperson for the ICPC said, “We are working on the allegations. A formal report was brought to the commission by NELFUND and the ICPC chairman ordered an investigation.”
During a meeting between NOA Director-General, Mallam Lanre Issa-Onilu, and the Managing Director of NELFUND, Mr. Akintunde Sawyerr, the two leaders discussed the matter in Abuja. Issa-Onilu revealed that preliminary investigations showed that some schools were delaying payments to students for their own financial gain. He also said some universities ignored disbursements from NELFUND and still demanded payment directly from students.
Sawyerr warned that legal action would be taken against any institutions or individuals found guilty. “We will not hesitate to pursue legal action. Any institution sabotaging the student loan scheme is doing great harm to the future of young Nigerians,” he said.
Several students have shared their frustration with the scheme. Rahmon Kehinde, a student of Kwara State Polytechnic, said although he received the N20,000 upkeep allowance, the N96,000 school fees portion of his loan was not processed properly.
Kehinde said, “I have written several letters and visited different offices, but no one has told me where the money is. Before my exams, the bursary told me to pay the fee myself and sort the issue out later. I had to look for the money. Now I’m stuck. Who will refund me?”
Another student from Kebbi State University, who spoke anonymously, described the situation as frustrating and humiliating.
He said, “We are starting exams by Tuesday, and a lot of us have not even done registration because of the delay in paying the school fees.”
He added, “NELFUND has released our money since last year, but the school has not done anything. We want NELFUND to look into this issue so that students who don’t have the means to pay can be allowed to sit their exams.”
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Students are reportedly threatening to protest if the issue is not resolved. Kebbi State University student, “This money is not a gift. It’s a loan we will repay. Why is it so difficult for us to access it?”
In response, Mustapha Monsur, spokesperson for Kebbi State University, denied that the school withheld any funds.
Monsur said, “Many of the students complaining were either not cleared by NELFUND due to one discrepancy or another. This is probably the reason NELFUND did not pay them.”
When asked if the university had received money from NELFUND, Monsur replied, “Honestly, I cannot tell you that now. Anything that has to do with finance, I have to get the directive of the Vice Chancellor to disclose.”
The House of Representatives has also pledged to investigate the matter. The Chairman of the House Committee on NELFUND, Ifeoluwa Ehindero, assured the National Association of Nigerian Students (NANS) that the lawmakers would involve the ICPC in overseeing the disbursement process.
NANS National President, Olusola Oladoja, said, “We presented the concerns of Nigerian students over the issue, and we reiterated that if such action persists, it would undermine the welfare of our students and affect their ability to access affordable education.”
As the investigation deepens, the hope of many Nigerian students now rests on the ability of the authorities to resolve the matter swiftly and ensure that the student loan scheme truly serves its purpose.
Kehinde said, “We are simply asking for what was promised,Education is our right. Don’t deny us our future.”