NELFUND denies allegations of ₦71 billion missing from the student loan scheme, attributing the confusion to a corrected misstatement by the ICPC.
The NelFund Student Loan scheme is under intense scrutiny following allegations of mismanagement and diversion of funds. A recent update by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) revealed discrepancies between the ₦100 billion reportedly released by the Federal Government and just ₦28.8 billion disbursed so far, sparking nationwide reactions.
While ICPC says it has launched an investigation into the matter, NelFund’s management has denied any missing funds, stating that all money remains accounted for and properly managed.
NelFund CEO Defends FG Student Loan Scheme
Akintunde Sawyerr, Managing Director of the Nigeria Education Loan Fund (NELFUND), has repeatedly insisted that no funds have been stolen or diverted.
“We are all looking for this so-called money. Let me be very clear: no ₦71 billion is missing,” Sawyerr stated on Channels TV. He explained that ₦203 billion was allocated to the fund through various sources, including ₦50 billion from the EFCC’s recovered assets and ₦143 billion from TETFund.
So far, ₦54 billion has been disbursed, ₦30 billion to institutions and ₦24 billion directly for student upkeep. The funds remain within CBN-regulated channels, according to Sawyerr.
He also clarified that NelFund does not transfer funds to students, but pays directly to institutions for tuition. In cases where students had already paid out-of-pocket, institutions are expected to issue refunds.
FG Student Loan Fund Breakdown
Sawyerr disclosed that NelFund has received ₦203 billion to date, not ₦100 billion as earlier claimed. The breakdown includes:
- ₦10 billion from the Ministry of Finance
- ₦50 billion from EFCC’s recovered assets
- ₦143 billion from TETFund
Of this, ₦54 billion has already been disbursed, ₦30 billion to institutions for tuition, and ₦24 billion directly for student upkeep.
How the Student Loan Fund in Nigeria Actually Works
To address confusion, Sawyerr explained that student loan Nigeria 2025 beneficiaries do not receive cash directly. Instead, NelFund disburses funds to educational institutions to cover tuition and institutional fees.
“There is no disbursement from NelFund to students through schools,” he said. “Students access classes once payments are confirmed. If a student had already paid, the institution is required to refund the excess.”
He admitted some schools delayed refunds or misused the process, but added that several have begun correcting this following internal checks and external pressure.
NANS Demands Accountability, Calls for Removal of Complicit VCs and Rectors
Reacting strongly, the National Association of Nigerian Students (NANS) has called on the Federal Government to dismiss vice chancellors, rectors, and provosts found to be mismanaging the student loan funds.
Speaking in Abuja, NANS National President Olushola Ladoja expressed disappointment over the alleged sabotage of President Tinubu’s education reform efforts.
“Any vice chancellor, rector, or provost found withholding student loans or involved in any shady dealings in this scheme must be removed from office,” Ladoja declared. “While the Federal Government is working to make life easier for students, some institutions are actively undermining that effort.”
He revealed that NelFund would host a meeting on Thursday with all SUG Presidents from Nigerian campuses and NANS executives in Abuja to address these violations and establish a transparent path forward.
National Orientation Agency and FG Back Probe into Schools, Banks
The National Orientation Agency (NOA) has also raised concerns, with its DG, Lanre Issa-Onilu, confirming that several schools may have withheld disbursement notifications from students, thereby demanding fees that had already been paid by NelFund.
In response, anti-corruption agencies have been tasked with investigating these institutions and banks suspected of benefiting from delayed transactions.
Sawyerr confirmed that some institutions failed to inform students that their fees had been paid, leading to “confusion and financial strain.”
Federal Government Maintains Support for The Student Loan
Despite the uproar, the Federal Government remains committed to the vision of the student loan Nigeria 2025 initiative, aiming to bridge access gaps in tertiary education. The presidency maintains that the NelFund scheme is a key pillar of education equity and national development.
Sawyer reassured students and parents of the FG loan scheme’s integrity, saying reforms are ongoing to plug loopholes and strengthen accountability mechanisms.
If you enjoyed this article, click here to read more informative posts, also check us out on Instagram for fun and engaging content.
Disclaimer: The opinions, views, and information expressed in this article are those of the author and do not necessarily reflect the official policy, position, or views of iNaijanow. The company assumes no liability for any errors, omissions, or damages arising from the use of this information.
