EFCC, NELFUND Strengthen Measures to Prevent Diversion of Student Loans

The Economic and Financial Crimes Commission (EFCC) and the Nigerian Education Loan Fund (NELFUND) have entered into a new partnership aimed at preventing the diversion, manipulation and misuse of funds meant to provide educational loans to Nigerian students.

The two institutions signed a Memorandum of Understanding (MoU) in Abuja on Wednesday to strengthen cooperation in financial crime prevention, risk assessment, transparency and accountability in the management and disbursement of student loans.

The agreement will also cover the management of recovered proceeds of crime allocated for educational support.

Speaking at the signing ceremony, EFCC Chairman, Ola Olukoyede, urged NELFUND to ensure that approved funds reach genuine and eligible students directly.

Olukoyede said the EFCC was adopting a preventive approach to financial crimes by identifying weaknesses in financial systems before they could be exploited.

He said the commission would not necessarily wait for funds to be stolen before intervening, stressing the importance of strengthening internal controls and identifying potential risks within NELFUND’s processes.

According to him, the partnership would allow both institutions to examine the student-loan system, identify areas vulnerable to abuse and introduce measures capable of preventing financial irregularities.

Joint Fraud Assessment Unit

Under the agreement, the EFCC and NELFUND will establish a joint Fraud Assessment and Control Unit to monitor compliance with established guidelines and identify potential risks associated with the administration of the student-loan scheme.

Olukoyede said the EFCC’s interest in the scheme was also linked to concerns about the vulnerability of young Nigerians to economic crimes.

He noted that many individuals investigated for cybercrime are young people, including students, and questioned whether recovered proceeds of crime could be channelled into legitimate interventions that would provide educational and economic support.

The EFCC chairman also advised NELFUND to strengthen its direct-payment system and work closely with educational institutions to ensure that only genuine beneficiaries receive funds.

He stressed the importance of ensuring that approved funds are transferred directly to the intended beneficiaries and used strictly for their designated purposes.

Olukoyede described NELFUND as one of the major initiatives of the administration of President Bola Ahmed Tinubu in expanding access to education financing.

He also commended the management of the fund for its efforts to increase the number of students benefiting from educational loans.

NELFUND Processes 1.6 Million Applications

The Managing Director and Chief Executive Officer of NELFUND, Akintunde Sawyer, disclosed that the agency had processed approximately 1.6 million applications, with about 960,000 loans approved.

Sawyer said the agency had upgraded its systems and introduced a new electronic portal through which applications, approvals and disbursements could be processed.

He explained that payments were made directly into students’ bank accounts through formal banking channels.

According to him, the system uses identifiers such as the National Identification Number (NIN), Joint Admissions and Matriculation Board (JAMB) registration details, matriculation numbers and Bank Verification Number (BVN) to verify applicants and beneficiaries.

The NELFUND chief executive said the electronic system was designed to eliminate intermediaries and prevent applicants from having to rely on personal connections to access the scheme.

He said applicants should not need to know anyone within NELFUND before they could obtain a loan if they met the eligibility requirements.

Electronic Records to Strengthen Accountability

Sawyer also said NELFUND was committed to ensuring that every transaction carried out through the scheme leaves an electronic trail that can be examined by auditors and future administrators.

He said the agency was developing systems that would remain functional regardless of changes in leadership, stressing that effective checks and balances should be embedded in the institution rather than dependent on particular individuals.

According to him, maintaining comprehensive electronic records would make it easier to investigate allegations, verify transactions and identify any irregularities within the system.

Sawyer further commended the EFCC for recovering funds that have supported NELFUND’s mandate.

He said the new collaboration would help ensure that recovered proceeds allocated to educational support are protected after recovery and eventually reach the students and other intended beneficiaries.

The partnership between the EFCC and NELFUND is expected to strengthen preventive controls, improve transparency and enhance accountability in the management of funds dedicated to supporting Nigerian students.

Both institutions are expected to work together through the new framework to identify potential vulnerabilities, improve monitoring mechanisms and reduce the risk of diversion or misuse of student-loan funds.

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