Education Minister denies fraud in student loan scheme, amid investigations

The Minister of Education, Dr. Tunji Alausa, has refuted claims of fraud in the Nigeria Education Loan Fund (NELFUND), stating that allegations circulating in the media are unfounded.

Speaking on Wednesday at a high-level meeting with Vice Chancellors, officials from the National Universities Commission (NUC), the Nigerian Education Loan Fund, and the Federal Ministry of Education, Dr. Alausa emphasized that the issues currently under scrutiny relate to procedural timelines, not financial misconduct.

“Let me start by saying there is no fraud in NELFUND,” the Minister affirmed. “ICPC reported that the information was not correct. What we have are issues that have to do with the timeline.”

His remarks come in response to a recent statement by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which announced it had launched a full-scale investigation into alleged discrepancies in the disbursement of student loans.

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According to the ICPC, preliminary investigations indicated that although the Federal Government allocated N100 billion for the student loan scheme, only N28.8 billion had been disbursed to students, leaving a gap of N71.2 billion that remains unaccounted for.

The development sparked concerns among stakeholders, particularly the National Association of Nigerian Students (NANS), which has threatened mass protests if the discrepancies are not addressed transparently.

In addition, the National Orientation Agency (NOA) accused some academic institutions, in collusion with certain banks, of deliberately delaying payments to eligible students in order to exploit the system for financial gain.

There have also been media reports alleging unauthorized deductions, ranging from N3,500 to N30,000, from student loan disbursements by some institutions.

The ICPC, through its spokesperson Demola Bakare, confirmed last Thursday that it had constituted a Special Task Force to investigate the allegations immediately after they were received.

While investigations are ongoing, the Education Minister’s clarification aims to calm public concern and assure stakeholders that due diligence is being applied to protect the integrity of the student loan program.

Dr. Alausa reiterated the government’s commitment to transparency, accountability, and the timely support of Nigerian students in need of financial assistance.

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