By Mercy Aikoye
The National Education Loan Fund (NELFUND) has denied allegations of diverting funds meant for its student loan scheme, as reportedly claimed by the Independent Corrupt Practices and other related Offences Commission (ICPC).
According to NELFUND’s Managing Director, Adekunle Sawyer, the figures quoted by ICPC as total receipts by the fund were understated. Sawyer made this statement while appearing before the House of Representatives Committee on Students Loan, Scholarship, and Higher Education.
Sawyer explained that the ICPC’s allegations were unfounded and had the potential to damage public confidence in the scheme. Although the ICPC later retracted its statement, Sawyer noted that the damage had already been done, as news of the allegations had spread and eroded confidence in the institution.
The NELFUND boss provided insight into the fund’s operations, revealing that a total of N54 billion had been disbursed since its inception. Of this amount, N30 billion had been paid to institutions, while N24 billion had been given to students as pocket money or stipends. According to Sawyer, this translates to direct benefits for approximately 293,000 individuals.
Sawyer emphasized that 90% of the funds received by NELFUND are earmarked exclusively for loans. This suggests that the fund is committed to using the majority of its resources to support students through loans, rather than administrative costs.
The NELFUND management team appeared before the House of Representatives Committee to address the ICPC’s allegations and provide clarity on the fund’s operations. The team’s appearance aimed to reassure stakeholders that the fund is being managed transparently and effectively.
The controversy surrounding NELFUND’s operations highlights the need for transparency and accountability in managing public funds. By providing detailed information on its operations and finances, NELFUND aims to restore public confidence in its student loan scheme and demonstrate its commitment to supporting students in Nigeria.
