ICPC Retracts Misstatement on NELFUND: NELFUND Money Not Missing, It Was An Error

 

A dramatic turn of events has emerged in the controversy surrounding the Nigeria Education Loan Fund (NELFUND), as the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has officially withdrawn an earlier assertion that suggested a large-scale misappropriation of student loan funds. The anti-graft agency has now issued a clarified position, stating that no discrepancies or diversion of funds have been established at this stage of its investigation.

Earlier reports had stirred public concern after the ICPC revealed what it described as troubling inconsistencies in the disbursement of the ₦100 billion earmarked by the Federal Government for the student loan scheme. According to the initial release, only ₦28.8 billion was reported to have reached students in tertiary institutions, raising suspicions that a staggering ₦71.2 billion might have been misappropriated by university administrators.

The news sent shockwaves through academic circles and governance stakeholders alike, with many calling for swift punitive action against any involved institutions. It also sparked debates on transparency and accountability in public financial management, particularly in a sector as sensitive as education financing.

That narrative has now shifted following an updated statement issued on Thursday via the Commission’s website. Signed by ICPC’s spokesperson, Demola Bakare, the clarification acknowledges a significant error in the original communication and urges the public to disregard the earlier claims of discrepancies.

According to the new update, the Commission confirmed that the only findings made so far relate to the total amount of money received and disbursed by NELFUND. The statement explicitly stresses that no conclusion has been drawn regarding any misappropriation or irregularity in the handling of the funds.

"We admit that this is not the case,” the revised statement reads. “Indeed, we accept that the same part of the sentence also contradicted the whole paragraph."

It further clarified that the paragraph in question should have read: “The ICPC confirmed that a clear case of discrepancies has NOT been established in the administration of the student loan scheme and announced that its investigation will now extend to beneficiary institutions and individual student recipients.”

This revision marks a complete reversal from the agency’s initial position, which many had interpreted as a preliminary indictment of several tertiary institutions. The ICPC emphasized that their ongoing investigation has yet to yield any evidence pointing to mismanagement or fraud.

Far from making any conclusions at this stage, the Commission now says its work is entering a more granular phase. This will include auditing the operations of the institutions and individuals who have received disbursements, rather than focusing solely on NELFUND's central operations.

“The impression of diversion and the issue of discrepancies do not exist at this stage,” the new release emphasized. “The investigation would have to move into the receiving institutions and persons before any reasonable deductions could be made.”

This development has calmed fears that the newly launched student loan initiative, introduced to alleviate financial burdens for students across Nigeria, had already been compromised by corruption. The Commission reminded the public that it does not operate through media trials nor does it act as a judicial body by indicting individuals or organizations without due process.

As part of its commitment to thoroughness, the ICPC urged patience from the general public, noting that investigations of this magnitude require significant time and resources. At the same time, the agency encouraged whistleblowers and individuals with credible information to come forward and support the process by contacting them via their official email, info@icpc.gov.ng.

“Our investigations are still ongoing, and there are no indictments yet,” the statement reiterated.

The controversy underscores the fragility of public trust in institutions and the high stakes involved when communication from oversight bodies is not carefully vetted. Analysts have pointed out that while the ICPC’s swift correction demonstrates accountability, the initial misstatement could have damaged the reputation of NELFUND and its partners if left unaddressed.

Public interest in the administration of the student loan program remains high, especially given its potential to reshape access to higher education in Nigeria. As such, stakeholders have called for improved transparency, not only from the fund managers but also from regulatory agencies tasked with monitoring the program.

In the meantime, both NELFUND and the ICPC are expected to maintain a more cautious and coordinated approach to public disclosures, especially as scrutiny intensifies over the efficacy and integrity of the student loan scheme.

Whether this saga becomes a turning point for better communication practices or another episode in Nigeria’s turbulent relationship with public sector accountability remains to be seen. For now, the investigation continues — but without the damning claims that originally set it alight.