In what is shaping up to be one of Nigeria’s most significant education finance scandals, ₦71.2 billion out of the ₦100 billion allocated for loans through the Nigeria Education Loan Fund (NELFUND) has gone missing. The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has confirmed that only ₦28.8 billion reached students, leaving a massive hole in the nation’s books and trust.
Key officials from the Budget Office, the Accountant-General’s office, the Central Bank, and NELFUND have been summoned. Investigators are also looking into 51 universities accused of quietly deducting fees from student loan payouts, charging up to ₦30,000 in some cases.
For many students, the betrayal stings. The loans were meant to be a lifeline in difficult times, but what they got instead was silence, missing funds, and deferred dreams. For those involved in managing the scheme, there’s growing tension—whispers of midnight visits from anti-graft agents and legal backchannels buzzing with activity.
This scandal is no longer just about accounting—it’s about accountability.
We explore the full picture in our extended digest below: 7 things we know so far about the missing NELFUND billions—and what might come next.
The Nigeria Education Loan Fund (NELFUND) was created to offer students fair access to higher education, regardless of background. Instead, it’s become a cautionary tale about what happens when opportunity meets opacity. Here’s what we’ve uncovered so far:
- ₦71.2 Billion Is Unaccounted For. Of the ₦100 billion released by the Federal Government, only ₦28.8 billion reached students. That leaves a staggering ₦71.2 billion with no clear explanation. According to ICPC, this discrepancy triggered the immediate launch of a formal investigation.
- NELFUND Has Received Over ₦200 billion in total. Beyond the initial ₦100 billion, NELFUND received ₦10 billion from FAAC, ₦50 billion recovered by the EFCC, and ₦71.9 billion (twice) from the Tertiary Education Trust Fund (TETFund). That totals ₦203.8 billion—but only ₦44.2 billion has been disbursed to students. Where is the rest?
- 3. Senior Officials Are Now Under Investigation: Letters of inquiry have gone to the Director-General of the Budget Office, the Accountant-General of the Federation, senior Central Bank officers, and the CEO and Executive Director of NELFUND. Each has been asked to provide detailed documentation and defend their handling of the fund.
- 51 Universities May Be Complicit in Illicit Deductions: According to the National Orientation Agency, at least 51 universities imposed unauthorised deductions on student disbursements, ranging from ₦3,500 to ₦30,000. These deductions, said to be under the guise of processing fees, are now part of the broader probe.
- Nearly 300,000 Students Were Short-Changed: NELFUND data shows that 293,178 students across 299 institutions received loans, but most received far less than what they were eligible for. Many students deferred their studies or dropped out entirely, unaware that the funds had been intercepted along the way.
- Lawyers and civil society organisations are calling for swift arrests. Members of the National Assembly are asking tough questions. Some officials are reportedly scrambling behind the scenes, seeking cover or shifting blame. If prosecutions don’t follow, it could trigger public backlash, especially among students.
- ICPC’s New Stance on the Issue: After initially confirming the discrepancy, ICPC has now backtracked, stating that the figures they initially provided were outdated and part of a clerical error. The commission has explained that they are still investigating but stressed that these findings should not be interpreted as an admission of missing funds. ICPC officials have clarified that the actual amount unaccounted for could be lower than initially reported.
For students, this isn’t just about missed money—it’s about missed chances. For some, the delay meant deferring a semester. For others, it meant dropping out entirely. There is growing anger that in a country already burdened by inflation and rising tuition, money meant for relief was quietly siphoned away.
Among fund managers and public officials, the emotion is shifting—from confidence to fear. There’s a sense that the spotlight may not move on this time. Some may be rehearsing their defence. Others may be seeking a quiet exit.
In Nigeria, we’ve seen scandals rise and fade before. But this time, the victims are students—young people fighting to build a future in a country that too often stands in their way. Whether this scandal ends in justice or just another shrug may well shape the next chapter in Nigeria’s education journey.
Follow Nigerian Bulletin as we continue to explore the evolving investigation, institutional responses, and what this means for the future of student support in Nigeria.
