The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched an investigation into some universities and financial institutions over allegations of fraudulent activities that have blocked students from receiving their approved payments under the Nigerian Education Loan Fund (NELFUND).
This action comes shortly after the House of Representatives announced its plan to investigate allegations that certain banks and universities were withholding disbursed funds meant for students. The situation stems from an investigation by the National Orientation Agency (NOA), which uncovered widespread malpractice in the management of the NELFUND initiative.
According to findings from NOA’s Community Orientation and Mobilisation Officers, a number of universities, in collaboration with specific banks, have been withholding the disbursement of approved loans. This has left many students stranded, despite having already secured funding through the NELFUND scheme.
Launched in 2024, the loan scheme was part of President Bola Tinubu’s efforts to fulfill his promise of improving access to higher education across the country. The initiative began with an N35 billion take-off grant, aimed at supporting Nigerian students with their tuition, mandatory fees, and living expenses in accredited higher education institutions. NELFUND credits universities directly for tuition and fees, while students receive a monthly upkeep allowance of N20,000.
However, the NOA’s investigation has revealed that certain institutions and banks are sabotaging the process by either withholding or diverting the funds intended for students. In a statement, Paul Odenyi, the Deputy Director of Communications and Media at the NOA, confirmed that several universities and banks were involved in these unethical practices, which have kept students from accessing the financial support they are entitled to.
This issue was first brought to light during a meeting between Mallam Lanre Issa-Onilu, the Director General of the NOA, and Mr. Akintunde Sawyerr, the Managing Director of NELFUND, in Abuja last weekend. Following the meeting, the ICPC confirmed that it had begun a full-scale investigation into the implicated universities.
Demola Bakare, the ICPC spokesperson, revealed that the anti-graft agency had received a formal petition from the NOA and had already started working on the allegations. “We are working on the allegations. The following day after the allegations were disclosed by NOA, a formal report was brought to the commission by NELFUND,” Bakare said. He further noted that the ICPC is conducting a second round of investigations to uncover other institutions involved in the fraud.
The NOA has also announced plans to expand its search to include more universities to determine the full extent of the malfeasance. Odenyi explained that the agency’s current investigations are only the initial phase, with plans to carry out more extensive checks across the country.
The National Association of Nigerian Students (NANS) has strongly supported these investigations. NANS President, Olusola Oladoja, confirmed that the leadership of the student union met with the House of Representatives Committee on NELFUND to discuss the issue. He revealed that the committee had assured NANS of its commitment to involving the ICPC in investigating the fraudulent activities surrounding the disbursement of loan funds.
Oladoja added, “Following our agitations about the allegations against some banks and institutions withholding disbursed funds from students under the NELFUND scheme, the NANS leadership, led by its National President, Olusola Oladoja, had a deliberation with the House of Representatives Committee on NELFUND.”
