Akintunde Sawyerr, managing director of the Nigerian Education Loan Fund (NELFund), says a corruption allegation against the scheme has affected its public perception.
The Nigerian Education Loan Fund has faced accusations of financial misconduct. There were claims that money meant for students wasn’t properly handled, and a report suggested that 51 schools were involved in illegal deductions related to the program.
Last Thursday, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) announced it was investigating possible problems with how the loans were given out.
The ICPC spokesperson, Demola Bakare, said these reports triggered their investigation.
However, on the same day, the commission took back its statement and clarified that there were no problems with how NELFund handled student loan payments.
When speaking to lawmakers on Wednesday, Sawyerr explained that NELFund’s process for giving loans to students is completely transparent.
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“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,” he said.
“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.”
Sawyerr explained that their response made the ICPC reconsider, leading to a quick retraction of the allegations against NELFund specifically.
“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.”
“I don’t think that has ever happened in Nigeria, where a security agency, within hours, reverses itself on a statement that was made.”
Despite the retraction, Sawyerr believes significant harm was already done to public trust.
“Nevertheless, a great deal of damage was done because, as you know, honourable members, once news is out there, you can retract all you like.”
“But it takes on a life of its own, and a lot of confidence has been lost in our institution, and it is sad for the institution of NELFund and the country of Nigeria.”
He added that they’re working hard to spread the message that the ICPC’s updated statement actually clears NELFund’s name.
The committee chairman, Ifeoluwa Ehindero, noted that lawmakers have received numerous reports claiming funds were misused and wanted explanations.
