Over ₦71 Billion Diverted From FG Student Loan – ICPC Reveals
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) announced on Thursday that only ₦28.8 billion was allocated to students across various tertiary institutions, despite ₦100 billion being released to these schools by the Federal Government.......➡️CONTINUE READING THE FULL ARTICLES HERE.
The anti-corruption agency indicated that preliminary investigations revealed that at least ₦71.2 billion had been misappropriated by the management of several universities responsible for handling these funds.
Naija News reports that the commission’s spokesperson, Demola Bakare, informed reporters in Abuja that key stakeholders, including the Director-General of the Budget Office and the Accountant-General of the Federation, have been summoned over the development.
Bakare further mentioned that senior officials from the Central Bank of Nigeria, along with the Chief Executive Officer and Executive Director of the Nigerian Education Loan Fund (NELFUND), have also been invited to provide necessary documentation and clarifications pertinent to the case.
According to Daily Trust, the Director-General of the National Orientation Agency, Lanre Issa-Onilu, raised concerns two weeks ago regarding attempts by universities to undermine the Tinubu administration’s student loan initiative.
Issa-Onilu claimed that at least 51 tertiary institutions were involved in unlawful deductions and exploitation associated with the NELFUND scheme, urging anti-corruption agencies to investigate and put an end to the fraudulent activities.
Additionally, media reports have suggested that these institutions made unauthorised deductions ranging from ₦3,500 to ₦30,000 from each student’s fees collected through the loan fund.
In an update on the situation, the ICPC spokesperson stated that the commission has taken action following the alarm raised, emphasising that those found guilty will face consequences.
Bakare said, “The Commission confirmed that its Chairman’s Special Task Force immediately swung into action upon receiving the report.
“Letters of investigation and invitations were dispatched to key stakeholders, including the Director-General of the Budget Office, the Accountant General of the Federation, and senior officials from the Central Bank of Nigeria (CBN).
“Additionally, the Chief Executive Officer and Executive Director of NELFUND were invited to provide documentation and explanations relevant to the case.
“Preliminary findings revealed a significant gap in the financial records of the disbursement process. While the Federal Government reportedly released ₦100 billion for the scheme, only ₦28.8 billion was disbursed to students, leaving an unaccounted sum of ₦71.2 billion.”
While providing a breakdown of NELFUND’s records, Bakare stated that the ICPC’s investigation revealed that as of March 19, 2024, the total amount received by NELFUND was ₦203.8 billion.
“The breakdown showed that N10 Billion was an allocation from the Federation Allocation Account Committee, ₦50 billion was from the Economic and Financial Crimes Commission, ₦71.9B was from the Tertiary Education Trust Fund, while another ₦71.9 billion was also from the same Tertiary Education Trust Fund,” the ICPC official told journalists.
According to him, responses received by the commission were critically analyzed, and interviews were conducted with the concerned individuals.
He noted that the ICPC, however, found that the total amount disbursed to institutions from inception to date is approximately ₦44,200,933,649.00, while a total of 299 institutions have benefited from the released funds.
“To date, the total amount disbursed to 299 beneficiary institutions stands at approximately ₦44.2 billion, with 293,178 students having benefited from the fund.
“The ICPC confirmed that a clear case of discrepancies has been established in the administration of the student loan scheme and announced that its investigation will now extend to beneficiary institutions and individual student recipients,” he said, adding that the commission would, from time to time, provide further updates as the investigation progresses.
“Comprehensive investigations into the alleged discrepancies surrounding the disbursement of students’ loans under the Nigeria Education Loan Fund (NELFUND) has commenced,” Bakare stated.