Ola Akinwunmi
Nigeria’s Minister of Education, Dr. Tunji Alausa, firmly dismissed allegations of fraud within the Nigerian Education Loan Fund (NELFUND) on Wednesday, contradicting claims by anti-corruption authorities investigating a staggering N71.2 billion discrepancy in the student loan scheme’s disbursements.
Speaking at the conclusion of a high-profile meeting with Vice Chancellors, officials from the National Universities Commission (NUC), NELFUND, and the Federal Ministry of Education, Alausa asserted, “Let me start by saying there is no fraud in NELFUND. The ICPC’s report on this matter is incorrect. What we are addressing are operational timeline challenges, not financial misconduct.”
The minister’s statement comes days after the Independent Corrupt Practices and Other Related Offences Commission (ICPC) announced a sweeping investigation into alleged irregularities in the disbursement of loans under the scheme. Preliminary findings by the ICPC revealed that while the Federal Government allocated N100 billion to NELFUND, only N28.8 billion reached students, leaving N71.2 billion unaccounted for.
The probe has sparked outrage among student groups, with the National Association of Nigerian Students (NANS) vowing nationwide protests over the alleged mismanagement. “We will not tolerate the exploitation of a program meant to uplift struggling students,” a NANS spokesperson declared.
Further complicating the controversy, the National Orientation Agency (NOA) accused unnamed institutions and banks of deliberately delaying loan payments to profit from accrued interest. Media reports also alleged that some universities deducted unauthorized fees—ranging from N3,500 to N30,000—from students’ loan disbursements, a claim the ICPC confirmed it is investigating.
In a statement last week, ICPC spokesperson Demola Bakare emphasized the urgency of the inquiry, stating, “Our Special Task Force is committed to ensuring accountability in the use of public funds.” However, Alausa doubled down on his defense of NELFUND, framing the delays as bureaucratic hurdles rather than fraud.
“Timelines for processing applications and coordinating with financial institutions have posed challenges, but we are resolving these systematically,” the minister explained, without addressing the specific N71.2 billion gap highlighted by the ICPC.
As the ICPC continues its investigation and student groups prepare to mobilize, stakeholders await clarity on the fate of the unaccounted funds and the future of the loan scheme. For now, the Education Ministry’s assurances clash sharply with anti-corruption watchdogs’ findings, leaving students and citizens caught in the crossfire of competing claims.
The ICPC is expected to release its full report in the coming weeks, which could either vindicate the Ministry or deepen calls for accountability. Meanwhile, NANS has announced plans to stage protests at federal institutions starting next Monday, amplifying pressure on authorities to address the crisis.