By Gift ChapiOdekina, Abuja

The Managing Director of the Nigerian Education Loan Fund, Akintunde Sawyerr (NELFUND) has debunked reports of alleged fund diversion within the student loan scheme, insisting that the agency has operated within the bounds of the law and in full transparency.

Speaking during an investigative hearing called by the House of Representatives Committee overseeing NELFUND, the agency’s leadership was summoned to address widespread concerns circulating on social media and in some print publications regarding alleged irregularities in the administration and disbursement of student loans.

Speaking at the hearing, the Chairman of the Committee, Rep. Ifwoluwa Ehindaro stated that the hearing became necessary in light of the volume of reports and allegations, particularly those suggesting possible mismanagement or diversion of student loan funds by certain federal institutions and NELFUND itself.

In response, the NELFUND Managing Director expressed gratitude for the opportunity to clarify the agency’s position, emphasizing that the concerns raised were taken seriously given the scheme’s importance to students, the National Assembly, and the administration.

“The ICPC initially issued a statement implying that funds may have been diverted by NELFUND,” the MD said. “We responded immediately, and within hours, the ICPC retracted that portion of their statement, clearing NELFUND of any wrongdoing. However, the damage to public confidence was already significant.”

He explained that although the ICPC maintained concerns about institutional irregularities in higher institutions, their earlier claim of fund diversion by NELFUND was wholly unfounded and officially withdrawn.

Providing a breakdown of the agency’s financial activities, the MD disclosed that NELFUND has disbursed a total of N54 billion since its inception — N30 billion to 303 federal tertiary institutions for tuition payments, and N24 billion as stipends or upkeep for approximately 293,000 Nigerian students in public universities, polytechnics, and colleges of education.

He further clarified that the total amount received by NELFUND is N203 billion, sourced from:

N10 billion appropriated by the Office of the Accountant General;N143 billion released by the Tertiary Education Trust Fund (TETFund) following a presidential directive;N50 billion from recovered proceeds of crime provided by the Economic and Financial Crimes Commission (EFCC).

The MD also pointed out inaccuracies in the ICPC’s earlier announcement, which had erroneously claimed that NELFUND received only N100 billion and disbursed N28 billion.

“These figures were understated and led to a wrong conclusion that N71 billion may have been diverted,” he said.

He reaffirmed the Fund’s commitment to transparency and strict adherence to the law, noting that 90% of all funds received by NELFUND must be used solely for student loans, in line with the law enacted by the National Assembly.

“This initiative is critical to the future of Nigeria’s youth, and any diversion would be a direct betrayal of their hopes,” the MD said. “We treat this project as sacred.”

The Commitee thereafter the NELFUND MD spoke, want into a closed door session.

The committee is expected to continue its oversight of NELFUND’s operations to ensure transparency, accountability, and sustained public trust in the student loan scheme.