The Nigerian Education Loan Fund (NELFUND) says no funds have been mismanaged, stolen, or are unaccounted for under the current student loan scheme.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) had earlier on Thursday alleged that out of N100 billion the government released for the student loan, only N28.8 billion was disbursed while N71.2bn was diverted.

The commission added that it had invited NELFUND and some managements of universities for investigation.

But NELFUND, in a statement on Thursday by the Director, Strategic Communications, Oseyemi Oluwatuyi, said it was alarmed by the surge of “inaccurate, misleading, and dangerously speculative reports circulating in the public space” regarding the administration of the student loan scheme.

The statement read, “These reports, which suggest misappropriation and mismanagement of funds, are entirely false, grossly irresponsible, and deeply damaging to the integrity of an institution established to deliver financial hope to millions of Nigerians.

“This is a coordinated distortion of facts that undermines public trust, weaponizes misinformation, and threatens the credibility of a national intervention still in its infancy.

“We wish to state the following, unequivocally: No funds have been mismanaged, stolen, or are unaccounted for under the current NELFUND student loan scheme.

“The scheme officially launched its student loan application portal in 2024. As of today, all institutional fees are paid directly to verified institutions, while upkeep allowances are disbursed to the verified bank accounts of eligible student applicants.

“The figures and funding amounts currently being misrepresented in the public are drawn from entirely different education financing interventions predating NELFUND’s operational commencement.

“They bear no relevance to the current student loan scheme and should not be falsely attributed to this institution.

“NELFUND operates a zero human interface, fully automated loan system that eliminates opportunities for financial misconduct. Every application and disbursement is digitally tracked, time stamped, and verifiable.

“The circulation of unverified, context-free, and inflammatory claims at this critical stage of implementation is not only reckless, it is a deliberate sabotage of a nationally significant, people centered programme designed to expand access to tertiary education and economic mobility.”

The spokesman of ICPC, Demola Bakare, told journalists in Abuja that key stakeholders, including the Director-General of the Budget Office and the Accountant-General of the Federation have been invited.

Bakare also disclosed that senior officials from the Central Bank of Nigeria as well as the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.

Recall that the Director-General of the National Orientation Agency, Lanre Issa-Onilu, had two weeks raised the alarm that the universities were trying to sabotage the Tinubu-led government on the students’ loan scheme.

Issa-Onilu alleged that no fewer than 51 tertiary institutions were implicated in illegal deductions and exploitation related to the NELFUND scheme, while calling on the anti-graft agencies to unravel the fraud and halt it.

Giving an update on the issue, the ICPC spokesman explained that the commission had since swung into action following the alarm, adding that those found culpable would be brought to book.

Bakare said, “The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report.

“Letters of investigation and invitations were dispatched to key stakeholders, including the Director-General of the Budget Office, the Accountant General of the Federation, and senior officials from the Central Bank of Nigeria.

“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.

“Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released N100 billion for the scheme, only N28.8 billion was disbursed to students, leaving an unaccounted sum of N71.2 billion.”

While giving the breakdown of the NELFUND’s records, Bakare said the ICPC’s strength of investigation revealed that the total money received by NELFUND as of March 19, 2024, was N203.8 billion.

“The breakdown showed that N10 Billion was an allocation from the Federation Allocation Account Committee, N50 billion was from the Economic and Financial Crimes Commission, N71.9B was from the Tertiary Education Trust Fund, while another N71.9 billion was also from the same Tertiary Education Trust Fund,” the ICPC official told journalists.

According to him, responses received by the commission were critically analyzed, and interviews were conducted with the concerned individuals.

He noted that the ICPC, however, found that the total amount disbursed to institutions from inception to date is about N44,200,933,649.00, while a total of 299 institutions have benefited from the funds released.

“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately N44.2 billion, with 293,178 students having benefited from the fund.

“The ICPC confirmed that a clear case of discrepancies has been established in the administration of the student loan scheme and announced that its investigation will now extend to beneficiary institutions and individual student recipients.”

He said the commission would from time-to-time provide further updates as the investigation progresses.

“Comprehensive investigations into the alleged discrepancies surrounding the disbursement of students’ loans under the Nigeria Education Loan Fund (NELFUND) has commenced,” he stated.