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.

Issa-Onilu disclosed that preliminary findings showed that some institutions, in collusion with banks, intentionally delayed payments to students for dubious financial gain.

He further revealed that some universities failed to acknowledge loan disbursements made by NELFUND, while demanding fees directly from students.

On his part, Sawyerr warned that NELFUND was prepared to pursue legal action against any institution or individual found culpable.

However, the ICPC confirmed to Sunday PUNCH 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 Sunday PUNCH 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.

“During the deliberation, we presented the concerns of Nigerian students over the issue, and we reiterated that if such action persists, it would undermine the welfare of our students and affect their ability to access affordable education.”

Students lament

Speaking with Sunday PUNCH, some of the affected students lamented that the situation had not only caused them emotional distress, but also put their academics on the line.

Some said they were unable to complete registration or sit examinations due to the non-reflection of the loan disbursements in their school accounts.

A student of the Kwara State Polytechnic, Rahmon Kehinde, said he applied for both the upkeep and school fees.

While the upkeep funds were credited to him, the school fee of N96,000 remained unresolved.

“According to NELFUND, the money was disbursed to the school, but the school has not given any reasonable explanation,” he said.

Kehinde lamented that he had to source money elsewhere to pay his school fees so that he could sit his exams.

He said, “I have written several letters and visited different offices, but no one has told me where the money is. Before my exams, the bursary told me to pay the fee myself and sort the issue out later. I had to look for the money. Now I’m stuck, who will refund me?

“The situation is becoming frustrating because I don’t know who is going to pay me back. This has been going on since January. Either the school should refund NELFUND, or NELFUND should pay me back because the money is hanging in the air.

“Nobody is telling us what is going on; the money is hanging between the school and NELFUND, and according to NELFUND, the money has been disbursed.”

A student from the Kebbi State University, who spoke on condition of anonymity, shared a similar concern.

He noted that NELFUND had informed students that their school fees had been paid, but the university withheld the funds.

“The school told us to go and borrow money to pay our school fees. If we had that kind of money, we wouldn’t have applied for the loan. Our exams begin on Tuesday, and many of us haven’t completed registration,” he added.

He described the situation as “frustrating and humiliating,” noting that students were already threatening to protest.

“We are starting exams by Tuesday, and a lot of us have not even done registration because of the delay in paying the school fees. This is challenging as we depend on NELFUND for the funds. NELFUND has released our money since last year, but the school has not done anything.

“The school insists that we must find the money and pay our school fees before we are allowed to sit our exams. Where do we start running to now? We want NELFUND to look into this issue so that students who don’t have the means to pay can be allowed to sit their exams.

“What is the essence of NELFUND releasing the fund since last year, and why are our school fees still not cleared? This money is a gift to us, but it is a loan that we will still have to repay. Students are already threatening to protest,” he said.

But reacting, the Public Relations Officer of the Kebbi State University, Mustapha Monsur, denied any wrongdoing on the part of the institution.

He stated that the university had not withheld any funds.

“What you need to ask those complaining is whether they were cleared by NELFUND when they applied for the loan, and how much is their allocation by NELFUND? They should come out with evidence that NELFUND has disbursed money to the school.

“Many of the students complaining were either not cleared by NELFUND, maybe because of one discrepancy or the other, and this is probably the reason why NELFUND is not paying them,” he said.

When asked to confirm if NELFUND had disbursed money to the school, Monsur said, “Honestly, I cannot tell you that now because anything that has to do with finance, I have to get the directive of the vice chancellor to disclose any financial information regarding the university.”