NELFUND MD Denies N71bn Claim, Confirms N203bn Loan

The Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr Akintunde Sawyer, on Wednesday, appeared before the House of Representatives Committee on NELFUND and Student Loan, denying any diversion of student loan funds and confirming that NELFUND has so far received N203 billion.

The investigative hearing, which took place in Abuja, was convened following allegations of N71 billion being diverted from the fund.

 Mr Sawyer dismissed the claim as false and misleading, describing the figures making the rounds on social media and in a statement by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) as incorrect.

According to Mr Sawyer, NELFUND has disbursed N54 billion to 303 federal institutions, with N30 billion paid directly to the institutions and N24 billion given as stipends to 293,000 students across government-owned universities, polytechnics, and colleges of education.

He explained that the total N203 billion lodged in NELFUND’s Central Bank of Nigeria (CBN) account came from three sources: N10 billion from the Office of the Accountant General, N143 billion from TETFund, and N50 billion recovered by the Economic and Financial Crimes Commission (EFCC) as part of an intervention fund.

Breaking down the TETFund contribution, Sawyer noted that N71 billion was first released in line with a presidential directive, followed by another N71 billion, bringing the total from TETFund to N143 billion.

He told the committee that contrary to the ICPC’s initial claims, NELFUND has operated strictly within the law, which mandates that 90 per cent of received funds must be dedicated to student loans.

He said there was no breach of this rule and no fund diversion of any kind.

Sawyer also disclosed that after NELFUND promptly responded to the ICPC’s statement, the anti-graft agency reviewed its position and retracted the part that accused NELFUND of diverting funds. However, it maintained concerns about irregularities within the education system itself.

He noted that the quick reversal by the ICPC was unprecedented but admitted that the initial allegation had already damaged public confidence in the loan scheme.

Before the committee moved into a closed-door session, Chairman Hon. Ifeoluwa Ehindero requested complete documentation of all disbursements and receipts by NELFUND to date to further aid the investigation.

The student loan scheme, approved under the administration of President Bola Ahmed Tinubu, is aimed at providing financial support to Nigerian students in public tertiary institutions across the country.