ICPC Probes ₦71.2 Billion Discrepancy in Nigeria’s Student Loan Scheme Amid Unauthorized Deductions by 51 Institutions

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched a sweeping investigation into widespread financial irregularities surrounding the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND).

This action comes in response to disturbing media reports alleging that at least 51 tertiary institutions unlawfully deducted sums from institutional fees paid through the federal student loan scheme. Affected students reportedly encountered illegal charges ranging from ₦3,500 to ₦30,000.

In a statement issued Thursday, the ICPC revealed that its preliminary inquiries have uncovered glaring discrepancies in the financial records linked to the loan program. While the Federal Government reportedly earmarked ₦100 billion for the initiative, only ₦28.8 billion has been traced directly to student beneficiaries — leaving a shocking ₦71.2 billion unaccounted for.

To address this, the ICPC activated its Chairman’s Special Task Force to investigate the matter in depth. Letters of investigation and formal invitations were sent to several top government stakeholders, including the Director General of the Budget Office, the Accountant General of the Federation, and high-ranking officials from the Central Bank of Nigeria (CBN).

Officials from NELFUND — including the Chief Executive Officer and the Executive Director — were also summoned to provide documents and clarify the fund’s operational procedures. According to the ICPC, the interviews and submitted documents have revealed further insights into how funds have flowed within the program.

As of March 19, 2023, NELFUND had reportedly received ₦203.8 billion in total. This included ₦10 billion from the Federation Allocation Account Committee (FAAC), ₦50 billion recovered by the Economic and Financial Crimes Commission (EFCC), and two disbursements of ₦71.9 billion each from the Tertiary Education Trust Fund (TETFund).

However, only ₦44.2 billion has been disbursed so far across 299 institutions, benefiting a total of 293,178 students. The ICPC has confirmed clear patterns of mismanagement and financial inconsistencies, prompting an expansion of the probe to include all 299 participating institutions as well as individual student beneficiaries.

The Commission stated that updates will be provided as the investigation progresses.

Meanwhile, the Centre for Anti-Corruption and Open Leadership (CACOL) has called for immediate intervention by the Federal Ministry of Education, the EFCC, and the ICPC. The organisation expressed serious concern over the unauthorized deductions by 51 universities from the disbursed student loans.

In a statement signed by CACOL’s Director of Administration and Programmes, Tola Oresanwo, on behalf of Chairman Debo Adeniran, the group condemned the exploitation of already vulnerable students.

“This alarming practice, if confirmed, constitutes a gross violation of students’ rights and a betrayal of the scheme’s core mission — to promote access to education for underprivileged Nigerians,” Oresanwo stated.

CACOL warned that such corrupt practices by school administrators could seriously compromise the goals of the loan initiative.

“The scheme was designed to empower Nigerian youth, not to enrich institutions through unjust deductions,” the statement said. “Such actions are a disservice to our nation’s future.”

Background

The Nigeria Education Loan Fund (NELFUND) was created under the administration of President Bola Ahmed Tinubu to improve access to higher education for Nigerian students.

Initially enacted on June 12, 2023, shortly after President Tinubu assumed office, the Students Loan (Access to Higher Education) Act was widely criticized for its limited eligibility criteria. These concerns prompted a legislative overhaul.

The revised Students Loan (Access to Higher Education) (Repeal and Re-Enactment) Act was signed into law on April 3, 2024. The new legislation established NELFUND as a corporate body responsible for managing and distributing the student loans.

The updated law broadened the scheme’s reach, allowing students in all public higher education institutions and approved vocational or skills acquisition centres to apply — regardless of family income. It also expanded the loan coverage to include both tuition and other educational costs.

The overarching aim of the fund is to ensure equal access to quality education, support academic pursuits for financially disadvantaged Nigerians, and strengthen the country’s knowledge economy.