Managing Director of the Nigerian Education Loan Fund, Akintunde Sawyerr, has acknowledged that allegations of corruption leveled against the scheme have impacted its image and eroded public trust.
The scheme, designed to support Nigerian students financially, has recently come under scrutiny following accusations of fund mismanagement.
A report also alleged that 51 tertiary institutions were complicit in unauthorized deductions and exploitation tied to the student loan programme.
The Independent Corrupt Practices and Other Related Offences Commission had, last Thursday, announced the launch of an investigation into suspected irregularities in the loan disbursement process.
However, later that same day, the commission walked back its earlier claim, stating that it found no discrepancies in the disbursement handled by NELFund.
While appearing before the House of Representatives Committee on Student Loans on Wednesday, Sawyerr maintained that the fund operates transparently and adheres strictly to due process when disbursing loans to eligible students.
“We, as the NELFund, were caught up in that release by the ICPC, which 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 unfounded, 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 having a second look 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,” he said.
Committee Chairman, Ifeoluwa Ehindero, said members of the House have been overwhelmed with multiple reports alleging diversion of funds under the scheme and stressed the need for clarity from the fund’s leadership.