The Managing Director of the Nigerian Education Loan Fund (NELFund), Akintunde Sawyerr, has expressed concerns over the negative impact of fraud allegations on the reputation of the scheme.
Speaking on the issue during an appearance before the House of Representatives committee on student loans, Sawyerr pointed out that the claims of corruption and mismanagement have affected the public’s perception of the fund, which is designed to support Nigerian students financially.
According to reports, allegations surfaced regarding the mismanagement of funds that were intended to be distributed to students.
A report further revealed that 51 tertiary institutions had been involved in illegal deductions and exploitation in relation to the NELFund loan disbursements. These claims have raised serious questions about the integrity of the process.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) took swift action after the allegations came to light. Last Thursday, the ICPC announced that it had begun investigating possible discrepancies in the disbursement of loans to students.
Demola Bakare, the ICPC spokesperson, confirmed that the allegations triggered the investigation. However, later the same day, the agency retracted its initial statement, clarifying that no discrepancies had been found in the loan disbursement process.
Sawyerr, while addressing the committee, clarified the situation from NELFund’s perspective.
“We, as the NELFund, were caught up in that release by the ICPC, which indicated that they were of the opinion that funds had been diverted by the Nigerian Education Loan Fund,” he explained. “We immediately reacted to that report because we recognised the damage. Even though we knew it was unfounded, we recognised the damage that it might do to public confidence in a scheme where there was already a great deal of scepticism.”
Sawyerr noted that the NELFund acted quickly to respond to the allegations, which led to the ICPC revisiting its stance. Within a few hours, the anti-graft agency issued a retraction, acknowledging that there were no issues regarding the diversion of funds by NELFund. However, the ICPC maintained its position on irregularities within the broader educational system and institutions.
The Chairman of the House of Representatives Committee on Student Loans, Ifeoluwa Ehindero, also addressed the growing concerns, stating that lawmakers have received numerous reports of alleged fund diversion within the scheme. Ehindero emphasized that there was an urgent need for further explanations from the relevant authorities.
