NELFUND Denies Funds Diversion

The Nigerian Education Loan Fund, NELFund, has denied allegations of diverting funds meant for student loans, saying its financial records show a transparent disbursement process.

The Managing Director, Akintunde Sawyerr told lawmakers during a session with the House of Representatives Committee on Student Loans that the fund has disbursed 54 billion naira out of the 203 billion naira it has received, with all transactions fully documented.

Sawyerr said NELFund had responded to a report by the Independent Corrupt Practices and Other Related Offences Commission, ICPC which had suggested possible misappropriation of funds.

According to him, the ICPC later retracted that portion of its report.

“They did not retract their assertion about irregularities in the education system and in institutions, but they wholeheartedly retracted their allegation that funds have been diverted. I don’t think that has happened before in Nigeria where a security agency reverses itself within hours. Nevertheless, a great deal of damage was done.”

The initial ICPC report followed a newspaper article that named 51 institutions allegedly in violation of the loan scheme’s guidelines.

Sawyerr said NELFund is mandated to allocate 90% of its funds directly to student loans, primarily for tuition payments. So far, he said, loans have been paid to 303 public universities, polytechnics, and colleges of education.

“Approximately 54 billion naira has left NELFund’s account to cover loans students applied for,” he said.

Committee Chairman Ifeoluwa Ehindero said the meeting with NELFund was necessary following widespread reports on social media alleging fund diversion and raising concerns about the administration of the loan program by some federal institutions.

Oduyemi Odumade, Edited By Grace Namiji