The Nigerian Education Loan Fund (NELFUND) is under scrutiny following an investigation launched by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) into alleged irregularities in the disbursement of student loans.
On May 1, 2025, the ICPC revealed that it was probing claims of discrepancies in the utilisation of ₦100 billion allocated by the federal government to support students in tertiary institutions. According to the commission, only ₦28.8 billion had reportedly been disbursed, leaving a staggering ₦71.2 billion unaccounted for.
The investigation also targets 51 tertiary institutions alleged to have made unauthorised deductions from student funds, ranging between ₦3,500 and ₦30,000 per student.
However, the commission retracted its earlier claim the following day. In a statement issued on May 2, the ICPC clarified that the figures cited were the result of a typographical error and that no confirmed discrepancies had been established at the time. The commission stated that its investigation remains ongoing and would focus on both institutional and individual recipients of the loans.
NELFUND responded to the allegations by denying any financial misconduct. The agency stated that all disbursements were made directly to verified student accounts and institutions through a fully automated system, limiting the possibility of manual interference or misappropriation.
According to NELFUND, the figures referenced by the ICPC pertained to previous education funding interventions and not to the current student loan scheme.
As of March 19, 2024, NELFUND reported a total receipt of ₦203.8 billion from various sources, including the Federation Allocation Account Committee, the Economic and Financial Crimes Commission, and the Tertiary Education Trust Fund. Out of this amount, ₦44.2 billion has been disbursed to 299 institutions, benefiting approximately 293,178 students nationwide.
The ICPC has stated that the investigation will continue, with updates to be released as findings emerge.