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Federal Government, Vice Chancellors Face Backlash Over N100 Billion Student Loan Discrepancy

Written by Agboola Oluwafemi on May 2, 2025

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The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has launched an extensive investigation into suspected financial irregularities surrounding the disbursement of student loans administered through the Nigeria Education Loan Fund (NELFUND).

Preliminary findings by the anti-corruption agency revealed a significant discrepancy: although the Federal Government reportedly released a total of ₦100 billion for the scheme, only ₦28.8 billion has so far reached student beneficiaries—leaving a staggering ₦71.2 billion unaccounted for.

In response to the revelations, the National Association of Nigerian Students (NANS) has vowed to organize nationwide protests should the Federal Government fail to address what it described as a gross breach of public trust.

Compounding concerns, the National Orientation Agency previously alleged that some tertiary institutions, in collusion with banks, deliberately delayed the disbursement of funds to eligible students for personal financial gain. These claims followed reports indicating unauthorized deductions—ranging from ₦3,500 to ₦30,000—were being made from student accounts linked to loan disbursements.

In a statement released on Thursday by ICPC spokesperson Demola Bakare, the agency confirmed that its Special Task Force had commenced a detailed probe immediately after receiving credible intelligence concerning the matter.

“The ICPC has initiated a full-scale investigation into alleged irregularities in the disbursement of funds under the Nigeria Education Loan Fund. This follows recent media coverage implicating no fewer than 51 tertiary institutions in unauthorized deductions and exploitative practices,” the statement read.

According to the commission, its investigation has so far revealed that as of March 19, 2023, a total of ₦203.8 billion had been received by NELFUND from various sources. These include ₦10 billion from the Federation Allocation Account Committee, ₦50 billion from the Economic and Financial Crimes Commission, and ₦143.8 billion in tranches from the Tertiary Education Trust Fund.

Out of this sum, only ₦44.2 billion has reportedly been disbursed to 299 institutions, reaching a total of 293,178 student beneficiaries. The Commission did not explicitly declare the remaining ₦159.6 billion as missing but confirmed that a “clear case of financial discrepancies” had been established in the loan administration process.

To that end, ICPC has issued letters of inquiry to key government stakeholders, including the Director-General of the Budget Office, the Accountant-General of the Federation, and officials from the Central Bank of Nigeria. Executives from NELFUND, including the Chief Executive Officer and Executive Director, have also been summoned to present relevant documentation and clarifications.

Amid growing national outrage, the leadership of NANS denounced what it described as systemic sabotage of student welfare. “The ICPC’s revelation of ₦71.2 billion in unaccounted funds is not only shocking but also an attack on the very future of Nigerian students. We demand urgent and transparent action. If no concrete steps are taken, we will be forced to mobilize students nationwide to demand justice,” NANS stated.

In response to the controversy, the Minister of Education, Dr. Tunji Alausa, is scheduled to convene a high-level meeting on May 6, 2025, with vice chancellors of affected universities and NELFUND leadership. The meeting is expected to address accountability concerns and reinforce the Ministry’s zero-tolerance stance on financial malpractice within the education sector.

Confirming the meeting, the Director of Press at the Ministry, Folasade Boriowo, said: “The Ministry is convening an urgent meeting with affected institutions to ensure transparency and to reaffirm our commitment to eradicating corruption in educational administration.”

Meanwhile, the Academic Staff Union of Universities (ASUU) said the unfolding developments vindicate its longstanding criticisms of the loan fund model. “We raised these concerns from the outset,” said ASUU President, Professor Victor Osodeke. “This scheme was never designed for sustainability; it was yet another mechanism for misappropriating public funds. Unfortunately, our warnings were ignored.”

As investigations continue, the spotlight remains firmly on the management of the nation’s student loan scheme, with calls for reform, accountability, and restitution gaining momentum across educational and civic platforms.

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