The Managing Director of the Nigeria Education Loan Fund (NELFund), Akintunde Sawyerr, has disclosed that the agency has disbursed N54 billion to beneficiaries of the student loan scheme across the country.
He explained that since the scheme commenced, NELFund has received about N203 billion from the Federal Government through various channels, including the Office of the Accountant General, the Tertiary Education Trust Fund (TETFund), and the Economic and Financial Crimes Commission (EFCC), which provided recovered proceeds of crime as directed by President Bola Tinubu.
Sawyerr stated these when he appeared before the House of Representatives Committee on Student Loans on Wednesday.
He clarified that the amount represents disbursements to 303 government-owned institutions and 293,000 students nationwide.
The MD, who expressed dismay over a recent statement by the Independent and Corrupt Practices and Related Offences Commission (ICPC), alleging discrepancies in the disbursement of the student loan, said that though the anti-graft agency has recanted, its claim has done severe damage to the Fund.
The ICPC last week said it has uncovered alleged discrepancies in the disbursement of the student loan, alleging that the amount disbursed does not tally with the receipt.
But the NELFund boss clarified that out of the total N54 billion disbursed so far, N30 billion was paid directly to the 303 institutions to cover students’ fees, while N24 billion was disbursed as stipends or pocket money to the student beneficiaries.
The House Committee had summoned the agency to provide explanations on the administration and disbursement of the loan.
He said, “I think their report followed a report in the print media that suggested that 51 institutions were erring. One was the irregularities they seem to have identified with the institutions and their relationship with the students in terms of access to education and charges or otherwise.
“We, as NELFund, were caught up in that release by the ICPC, who indicated that they were of the opinion that funds had been diverted by the Nigerian Education Loan Fund.
“We immediately reacted to that report because we recognised the damage; even though we knew it was unbounded, we recognised the damage that it might do to public confidence in a scheme where there was already a great deal of scepticism.
“Our reaction led to the ICPC looking again at their statement, and within a matter of hours, they retracted the statement that suggested that the Nigerian Education Loan Fund might be diverting funds.
“They did not retract their assertion about the irregularities in the educational system and in the institutions, but they retracted wholeheartedly their allegation that funds have been diverted. I don’t think that has happened ever in Nigeria, where a security agency within hours reverses itself on a statement that was made. Nevertheless, a great deal of damage was done because, as you know, Honourable Members, once news is out there, you can retract all you like.
“It takes on a life of its own, and a lot of confidence has been lost in our institution, and it is sad for the institution of NELFund and for the country of Nigeria. We have worked very hard to put out the narrative that actually the new statement by the ICPC vindicates NELFund and establishes the fact that no funds have been diverted”.
He informed that, in line with its mandate, NELFund is to spend 90 per cent of the funds that come to it exclusively on the loans to pay the fees of students.
He added, “Those funds cannot be touched and cannot be used for anything else. Any form of diversion in that regard would be a breach of the law. So, just going straight through to the numbers, I can confirm that the Nigerian Education Loan Fund has done the following.
“NELFund has paid, as of today, 303 institutions, government-owned institutions, universities, polytechnics, and colleges of education. 303. NELFund has paid out, has disbursed a total of approximately 54 billion Naira. 54 billion Naira has left the account of NELFund to go to pay for the loans that people have applied for.
“That 54 billion Naira is split into two sections. Of that 54 billion, 30 billion has been paid to the 303 institutions that I just mentioned. 24 billion has been paid as pocket money or stipend to 293,000 students who are Nigerians, studying at the tertiary level in Nigerian government-owned institutions.”
In his address earlier, Chairman of the Committee, Ifeoluwa Ehindero, stated that the administration of the student loan scheme has been implemented by the National Education Loan Fund.
He added, “The committee has been inundated with several reports, making waves on social media, including concerns about possible diversion of loan funds and issues that have to do with the disbursement and administration of the student loan by certain federal institutions.
“This has necessitated this meeting that we have called the agency, the National Education Loan Fund, to come and make clarifications and enlighten this committee on the issues that have been making rounds on social media.”
