NELFUND Debunks Alleged Diversion Of N54bn Student Loan Funds

The Nigerian Education Loan Fund (NELFUND) has debunked reports of alleged diversion of the scheme’s funds amounting to N54billion.

The Managing Director of NELFUND, Akintunde Sawyerr, stated this when he appeared before the House of Representatives Committee oversighting the agency, to clear its name of the alleged irregularities in the administration and disbursement of student loans to beneficiaries.

The committee’s chairman, Hon. Ifeoluwa Ehindaro, had said the legislative hearing became necessary, following the volume of reports and allegations, particularly those suggesting possible mismanagement or diversion of student loan funds by certain federal institutions and NELFUND itself.

But, speaking before the meeting went into closed-door session, the NELFUND boss said; “the ICPC initially issued a statement implying that funds may have been diverted by NELFUND.

“We responded immediately, and within hours, the ICPC retracted that portion of their statement, clearing NELFUND of any wrongdoing. However, the damage to public confidence was already significant.”

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He stated that although the ICPC maintained concerns about institutional irregularities in higher institutions, their earlier claim of fund diversion by NELFUND was wholly unfounded and officially withdrawn.

Sawyerr explained that NELFUND had disbursed a total of N54 billion since its inception—N30 billion to 303 federal tertiary institutions for tuition payments, and N24 billion as stipends or upkeep for approximately 293,000 Nigerian students in public universities, polytechnics, and colleges of education.

He further clarified that the total amount received by NELFUND was N203 billion, sourced from “N10 billion appropriated by the Office of the Accountant General; N143 billion released by the Tertiary Education Trust Fund (TETFund) following a presidential directive; N50 billion from recovered proceeds of crimes provided by the Economic and Financial Crimes Commission (EFCC).”

The Managing Director also pointed out inaccuracies in the ICPC’s earlier announcement, which had erroneously claimed that NELFUND received only N100 billion and disbursed N28 billion.

“These figures were understated and led to a wrong conclusion that N71 billion may have been diverted,” he said, adding that, “this initiative is critical to the future of Nigeria’s youth, and any diversion would be a direct betrayal of their hopes. We treat this project as sacred.”