NELFUND Refutes ICPC’s Allegation of Fund Diversion

By Oluwakemi Kindness

The National Education Loan Fund (NELFUND) has dismissed claims by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) that it diverted funds meant for student loans.

Speaking before the House of Representatives Committee on Students Loan, Scholarship, and Higher Education, the Managing Director of NELFUND, Adekunle Sawyer, firmly denied any financial misconduct, asserting that the ICPC’s claims were based on incorrect figures.

Sawyer stated, “We at NELFUND were surprised by the ICPC’s release suggesting that funds had been diverted. We immediately responded because, even though the allegation was baseless, we understood the potential damage to public trust in a scheme that is already under scrutiny.”

He expressed concern that despite the ICPC’s subsequent retraction, the initial claim had already eroded public confidence. “Once news is out, even with a retraction, it takes on a life of its own,” he said.

Providing a breakdown of the fund’s disbursements, Sawyer explained that a total of N54 billion has been released since the inception of the student loan program. Of that amount, N30 billion was allocated to institutional payments, while N24 billion went directly to students as stipends or upkeep, benefiting approximately 293,000 students.

He warned that any institution found violating the terms of the loan scheme would face consequences. Although NELFUND lacks the legal authority to suspend or dismiss institutional heads, Sawyer assured that any wrongdoing would be reported to the Minister of Education for appropriate action.

He further noted that institutions withholding information from student beneficiaries about the disbursed loans are committing an offense.

Addressing the difficulties students face in accessing the loans, Sawyer emphasized the need for higher institutions to act swiftly in disbursing funds once they receive payments from NELFUND. According to him, the agency has so far disbursed funds to 303 institutions for the benefit of 293,000 students.

For the Chairman of the Committee, Ifeoluwa Ehindero, the Committee has opted to look further and get Clarifications on how Students and Institutions concerned can get access to classes and the Funds disbursed.