ICPC Retracts Student Loan Mismanagement Allegation, Cites Statement Error

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has withdrawn its earlier claim of discrepancies in the disbursement of student loans under the Nigeria Education Loan Fund (NELFUND), attributing the assertion to a communication error.

In a revised statement issued on Thursday, the ICPC clarified that its earlier release incorrectly suggested that a case of financial mismanagement had already been established. The commission said the confusion stemmed from a missing word in the second-to-last paragraph of its initial press release, which altered the meaning of the statement.

“The omission of the word ‘NOT’ created a misleading impression that the ICPC had confirmed diversion or discrepancies in the student loan disbursements,” said Demola Bakare, Director of Public Enlightenment and Education at ICPC.

He explained that, contrary to reports, the investigation is still in the preliminary stage and has not yet confirmed any wrongdoing. “Only the amounts received and disbursed by NELFUND have been verified so far,” Bakare stated.

Earlier, the ICPC claimed that N100 billion had been released for student loans, of which only N28.8 billion was disbursed, leaving N71.2 billion allegedly unaccounted for. However, the commission has now clarified that these figures were misrepresented and no conclusion has been drawn.

The investigation, sparked by petitions from NELFUND and the National Orientation Agency (NOA), will now focus on examining the roles of tertiary institutions and student beneficiaries.

Preliminary findings indicate that NELFUND received a total of N203.8 billion from various sources, including N10 billion from the Federation Allocation Account Committee, N50 billion from the EFCC, and N143.8 billion from the Tertiary Education Trust Fund (TETFund) in two tranches.

Out of the total amount, N44.2 billion has so far been disbursed to 299 institutions, benefiting 293,178 students.

Despite the retraction, allegations persist against some institutions for mismanaging funds. The National Association of Nigerian Students (NANS) has accused several schools of diverting or withholding student loan funds, while the NOA claims it has identified institutions and banks involved in fraudulent practices.

NANS has threatened nationwide protests to draw the attention of President Bola Tinubu to the issue and called for greater transparency in the disbursement process.

The House of Representatives Committee on NELFUND has also intervened and pledged to collaborate with the ICPC to monitor fund distribution and prevent abuse.

NELFUND, established under the revised Student Loans (Access to Higher Education) Act, 2024, is mandated to provide loans for tuition, vocational training, and other educational expenses.

The ICPC says it will continue to work with NOA and other stakeholders to ensure the integrity of the student loan programme.