Student Loan: NELFund denies alleged corruption, ICPC clarifies statement

The Nigerian Education Loan Fund (NELFund) has denied claims of mismanagement in disbursing student loan funds. This development comes after the Independent Corrupt Practices and Other Related Offences Commission (ICPC) said it was investigating alleged corruption in the disbursement of the funds.

But in a statement by the fund’s Director of Strategic Communications, Oseyemi Oluwatuyi, NELFund said ICPC’s comment was taken out of context. “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,” Oluwatuyi said.

“All institutional fees are paid directly to verified institutions, while upkeep allowances go into the verified bank accounts of eligible students,” she said. “The reports circulating in the public space are based on outdated figures and previous interventions that predate our operations.” Meanwhile, the ICPC has clarified its earlier statement on the student loan. The institution’s spokesman, Demola Bakare, said the agency’s move to investigate the disbursement of the funds was due to claims that 51 schools were involved in illegal deductions and exploitation related to the NELFund scheme.

“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,” the agency’s statement partly read.