The Nigeria Education Loan Fund (NELFUND) has dismissed allegations that ₦71 billion is missing or stolen from its student loan scheme, describing the claims as baseless and misleading.
NELFUND’s Managing Director and CEO, Akintunde Sawyerr, cleared the air during an appearance on Channels Television’s Sunday Politics, following reports that some educational institutions may have diverted funds intended for student loans.
These allegations prompted the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to launch a formal investigation.
“We are all looking for this so-called money. First of all, let me be very clear. No money has been stolen. The President, in his wisdom and well-intentioned programme, decided that he was going to set up the Nigeria Education Loan Fund,” Sawyerr said.
He continued, “But let me go back and just continue to correct this misconception. No N71bn is missing.”
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Misunderstandings Around Disbursement Explained
Addressing public confusion over the disbursement process, Sawyerr emphasized that funds from NELFUND are not paid directly to students. Instead, the money is sent straight to higher institutions to cover tuition and institutional fees, ensuring that students can access education without financial barriers.
“Let me correct a misconception there. There is no disbursement from the NELFUND account through the schools to the students. The NELFUND money goes to the schools for their tuition or institutional charges. The schools are supposed to give unfettered access to the students for classes,” he said.
He clarified that schools only return funds to students in exceptional cases—such as when a student has already paid their fees, resulting in a double payment.
Ongoing Investigation into System Gaps
While denying any missing funds, Sawyerr acknowledged that some issues have arisen in the current phase of the scheme, particularly due to “human intervention.” He assured the public that a thorough investigation is underway to identify and resolve any inconsistencies in the process.
“So there’s a very careful, meticulous investigation going on to try to understand where this is happening and how it’s happening,” he added.
The student loan scheme, aimed at expanding access to higher education, has faced criticism from students and parents over delayed payments and difficulty accessing benefits. NELFUND maintains that it is committed to transparency and ensuring the scheme fulfils its intended purpose.
