THE Independent Corrupt Practices and other related offences Commission has started investigating some universities and banks for allegedly engaging in fraudulent activities that prevented students from receiving payments allocated to them under the Federal Government’s student loan scheme.
This is just as the House of Representatives declared its intention to investigate allegations against some banks and tertiary institutions withholding disbursed funds from students.
This development follows an investigation by the National Orientation Agency, which uncovered widespread unethical practices in the administration of the initiative.
According to findings from the NOA’s Community Orientation and Mobilisation Officers, some universities, in collusion with certain financial institutions, deliberately withhold the disbursement of approved loans. This has left many students stranded despite having secured funding through the Nigerian Education Loan Fund.
The loan scheme, which was inaugurated last year as part of President Bola Tinubu’s efforts to fulfil his campaign promise of improving access to higher education, began with a N35bn take-off grant approved by the Federal Government.
The programme, operated by NELFUND, was designed to provide financial support to qualified Nigerian students for tuition, mandatory fees, and living expenses in recognised higher education and vocational institutions across the country.
Under the scheme, NELFUND credits the institution directly for the tuition and fees, while a monthly upkeep allowance of N20,000 is paid into students’ accounts.
However, NOA alleged that some tertiary institutions, in collaboration with certain banks, were sabotaging the process and depriving students of their entitlements.
In a statement, the NOA’s Deputy Director of Communications and Media, Paul Odenyi, confirmed that several institutions and banks had been implicated in fraudulent activities that prevented students from accessing the funds meant for them.
The issue came to light during a high-level meeting between the NOA Director General, Mallam Lanre Issa-Onilu, and the Managing Director of NELFUND, Mr Akintunde Sawyerr, last weekend in Abuja.
However, the ICPC confirmed to this newspaper that it had commenced a full-scale probe into universities accused of withholding or diverting loan funds.
The spokesperson for the anti-graft agency, Demola Bakare, disclosed that the ICPC had received a petition from the NOA for the investigation of universities involved in the fraudulent act.
“We are working on the allegations. The following day after the allegations were disclosed by NOA, a formal report was brought to the commission by NELFUND.
“The ICPC chairman ordered an investigation into the matter, and I know we have started work on it and the NOA is assisting too,” Bakare said.
He added that another round of investigation to expose more schools had started.
NOA also said it would turn its searchlight on more tertiary institutions in a bid to uncover their involvement in the malfeasance.
The spokesman for the agency, Odenyi, told this newspaper that the revelation by the agency was the first phase of the probe.
He said, “This is just a pilot phase. We have asked our officers to do it across the country so that we will be sure where these things are happening.”
Confirming the intention of the House of Representatives to probe universities short-changing students, the National President of the National Association of Nigerian Students, Olusola Oladoja, said the Chairman of the House Committee on NELFUND, Ifeoluwa Ehindero, pledged the committee’s commitment to involve the ICPC in the process of funds disbursement and implementation.
He disclosed that the leadership of NANS met with the committee on NELFUND on Thursday and discussed ways of resolving the issue.
He said, “Following our agitations about the allegations against some banks and institutions withholding disbursed funds from students under the NELFUND scheme, the NANS leadership, led by its National President, Olusola Oladoja, had a deliberation with the House of Representatives Committee on NELFUND.