The Federal Ministry of Education has launched a formal investigation into allegations of illegal deductions from the institutional fees paid by the Nigerian Educational Loan Fund (NELFUND) for beneficiaries of the Student Loan Scheme. The investigation follows concerns raised about potential financial misconduct in the disbursement process.

Dr. Tunji Alausa, the Minister of Education, expressed his alarm over the alleged infractions, calling them “very disturbing and extremely concerning.” He emphasized the seriousness of the issue, asserting that such actions, if proven true, would constitute a gross violation of public trust.

In a related development, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) also announced the commencement of a probe into the alleged discrepancies in the management of the Student Loan scheme. The commission confirmed that it had initiated investigations into the matter, with several key stakeholders being questioned.

However, NELFUND has strongly denied any mismanagement or unauthorized use of funds. In an official statement, the organization reiterated that the allegations were “misleading and inaccurate.” NELFUND defended its operations, stating that all institutional fees were paid directly to the respective universities, and student upkeep allowances were disbursed to verified bank accounts, with a fully automated system in place to prevent any financial misconduct.

President Bola Ahmed Tinubu introduced the Student Loan scheme to provide indigent students with easier access to higher education. As of now, NELFUND has disbursed N53 billion to students, with the scheme covering tuition fees and providing recipients with N20,000 monthly for upkeep.

Despite the assurances from NELFUND, concerns have been raised by the National Orientation Agency (NOA), with Director-General Lanre Isa-Onilu warning of suspicious activities surrounding the payment process at some universities. While the Ministry of Education initially dismissed these concerns as minor technical glitches, they have now decided to take action.

To address these concerns, Education Minister Dr. Alausa has called for an urgent meeting with university vice-chancellors and NELFUND’s Managing Director, Akintunde Sawyerr. The meeting, scheduled for May 6, will seek to thoroughly investigate the issue and ensure full accountability in the disbursement process.

In a statement released by Boriowo Folasade, the Ministry’s Press and Public Relations Director, Dr. Alausa reiterated the government’s zero-tolerance policy toward financial malpractice in the education sector. He warned that any unauthorized deductions from student loans would undermine the very foundation of the NELFUND scheme, which was established to provide equitable access to education for all students.

The Ministry also announced plans to introduce a compliance-tracking initiative in collaboration with the Athena Centre to monitor institutional transparency. Additionally, an Annual University Transparency Index will be launched to foster accountability, while training will be offered to Bursars and ICT Heads of universities on maintaining open-portal systems.

“We are committed to strengthening transparency, promoting responsible financial conduct, and ensuring that every kobo allocated for student welfare is used appropriately,” the minister said. “Anyone found culpable will face appropriate sanctions.”

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) also confirmed its ongoing investigation into the matter. According to ICPC spokesperson Debola Bakare, preliminary findings revealed a significant gap in the financial records of the loan disbursement process. As of March 19, 2023, ICPC reported that N203.8 billion had been allocated to NELFUND, with a total of N44.2 billion disbursed to 299 beneficiary institutions, covering 293,178 students.

Despite these findings, NELFUND has rejected the allegations, insisting that the discrepancies reported by the ICPC are related to previous education financing programs and not the current student loan scheme.

“NELFUND operates a zero human interface, fully automated loan system that eliminates opportunities for financial misconduct,” the organization said in its statement. “Every application and disbursement is digitally tracked, time-stamped, and verifiable.”

The Education Ministry has assured Nigerians that it will take all necessary steps to ensure the integrity of the student loan scheme and uphold the government’s commitment to transparent and accountable management of public funds. The Ministry also urged the media and the public to refrain from spreading unverified claims and to wait for official updates.

“As part of our National Education Sector Reform Initiative (NESRI), governance remains the top pillar of our agenda. We will not allow the future of Nigeria’s youth to be hijacked by misinformation,” concluded Dr. Alausa.