NELFUND speaks on mismanagement of student loan funds

The Nigerian Education Loan Fund (NELFUND) has strongly denied allegations of mismanaging funds under the Federal Government’s student loan scheme, dismissing the claims as false, misleading, and damaging to its integrity.

The denial comes in response to a statement made on Thursday by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which alleged that out of the N100 billion allocated for the student loan programme, only N28.8 billion had been disbursed while N71.2 billion was allegedly diverted.

The ICPC said it had summoned NELFUND and some university managements for questioning as part of its investigation into the alleged financial irregularities.

In a swift reaction, NELFUND issued a statement signed by its Director of Strategic Communications, Oseyemi Oluwatuyi, rejecting the accusations and describing the reports as “inaccurate, misleading, and dangerously speculative.”

“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,” the statement read.

According to NELFUND, the student loan scheme officially launched in 2024, and all disbursements so far have been processed through a fully automated system. Institutional fees are paid directly to verified schools, while upkeep allowances go to eligible students’ verified bank accounts.

The agency clarified that the figures being circulated by ICPC are related to previous education financing programmes that predate NELFUND’s establishment and should not be linked to the current loan scheme.

“NELFUND operates a zero-human interface, fully automated loan system that eliminates opportunities for financial misconduct. Every application and disbursement is digitally tracked, timestamped, and verifiable,” the statement added.

The agency emphasized that it is fully cooperating with oversight bodies, including the ICPC, and has responded to all official requests for information.

It further condemned the circulation of what it described as “context-free and inflammatory claims,” warning that such misinformation could sabotage a critical national programme designed to expand access to tertiary education.

“NELFUND remains focused and committed to the transparent delivery of its national mandate. The future of Nigeria’s youth is too important to be hijacked by misinformation,” it concluded.