Student Loan Nigeria: N71bn Disappears in Fund Scandal
Sharon Zachariah
Student Loan Nigeria: N71bn Disappears in Fund Scandal
Student Loan Nigeria, NELFUND corruption, and missing N71 billion have stirred deep worry in the nation’s education sector. A staggering N71.2 billion remains unaccounted for in the student loan scheme—leaving students, parents, and the public confused and demanding answers.
It all began with a report from the Independent Corrupt Practices and Other Related Offences Commission (ICPC). At first, the anti-corruption agency claimed it had uncovered financial discrepancies in the disbursement of the Nigeria Education Loan Fund (NELFUND).
But shortly after, the commission made a sharp U-turn.
Demola Bakare, ICPC’s Director of Public Enlightenment and Education, explained the mix-up. According to him, the initial report missed the word “NOT.” This one missing word created the false impression that actual financial misconduct had already been confirmed.
“The impression of diversion and the issue of discrepancies do not exist at this stage,” Bakare clarified. “The investigation would have to move into the receiving institutions and persons before any reasonable deductions could be made.”
That clarification did little to calm public concern.
Instead of closing the case, the ICPC shifted the spotlight. Investigators are now focusing on Nigeria’s tertiary institutions and the students who received (or were supposed to receive) the loans.
This twist in the probe came after a petition from both NELFUND and the National Orientation Agency (NOA). The two agencies requested a closer look at what happened after funds left the federal coffers.
While NELFUND claimed that the federal government released a total of N100 billion to support student loans, only N28.8 billion reached students. That leaves N71.2 billion in question. Where did the rest go?
This massive gap raised serious alarms.
To get answers, ICPC sent letters and invites to major figures in public finance. The Director General of the Budget Office, the Accountant General of the Federation, and senior officials at the Central Bank of Nigeria were all asked to provide information.
The investigation also reached into NELFUND itself.
Top executives, including the CEO and Executive Director, were called in to hand over documents and explain how the funds were handled. While the ICPC has not confirmed wrongdoing yet, the details emerging from the inquiry are troubling.
One of the most disturbing claims came from the National Association of Nigerian Students (NANS). The group said some universities were charging students illegal fees—ranging from N3,500 to N30,000—from the loans meant to be free of such charges.
Worse still, others allegedly diverted entire loan amounts into personal or private accounts.
This means some students, despite having loans released in their names, received nothing. Instead, they had to struggle to pay their tuition and other costs themselves.
Akinbodunse Felicia, Vice President for Inter-Campus and Gender Affairs at NANS, spoke passionately about the betrayal students are facing. She cited NOA’s findings that some schools and banks might be working together to hide the truth.
“Students were not even informed that funds had been disbursed in their names,” she said. “Many paid their fees out of pocket while those funds vanished.”
NANS is not sitting back.
The association has already planned national protests to raise the alarm. According to them, students want President Bola Tinubu to personally intervene in the matter.
Akintunde Sawyerr, Managing Director of NELFUND, did not deny the troubling reports. He admitted there were strong allegations of corruption and confirmed that his agency is cooperating with investigators.
In the House of Representatives, lawmakers have also taken action.
The Committee on NELFUND promised to work with the ICPC to monitor the fund’s operations. Their goal is to prevent any financial fraud from taking root in the loan system, which was meant to give students a fair shot at education.
The Student Loans (Access to Higher Education) Act, 2024 was a bold idea. It aimed to help Nigerian students go to school without worrying about money. The loans cover tuition, charges, and even living expenses.
But what was meant to be a lifeline now risks becoming a scandal.
ICPC’s renewed focus is now firmly on the institutions and individuals that handled or received the funds. The anti-corruption body says its investigation is still in early stages, and no one has been found guilty yet.
But for thousands of Nigerian students, the damage is already being felt.
They trusted a system that promised to support them. Instead, many are still struggling to afford school while loan money floats in limbo—or worse, may have been stolen.
As the investigation deepens, Nigerians are asking one pressing question: who took the missing billions?
Until the answers come, the public continues to watch closely.
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