The Nigerian Education Loan Fund (NELFund) has refuted allegations of misappropriation and mismanagement of student loan funds.

In a statement on Thursday, Oseyemi Oluwatuyi, the fund’s director of strategic communications, said some media reports are circulating “unverified, context-free, and inflammatory” claims suggesting that it mismanaged student loan monies.

Oluwatuyi said these allegations are “false, grossly irresponsible, and damaging” to the integrity of the scheme.

TheCable earlier reported that the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has commenced an investigation into alleged discrepancies in the disbursement of student loan funds.

A report had claimed that 51 tertiary institutions were involved in illegal deductions and exploitation related to the NELFund scheme.

The ICPC said that of the N100 billion released by the federal government reportedly for the student loan scheme, only N28.8 billion had been disbursed to students as of the time of the report, leaving about N71.2 billion unaccounted for.

It noted that its special task force has invited key stakeholders for questioning, including the director general of the budget office, the accountant general of the federation, and officials of the Central Bank of Nigeria.

Akintunde Sawyerr, NELFund’s managing director, has also been invited to provide relevant documentation.

The ICPC said N203.8 billion had been received by NELFund as of March 19, 2024, from multiple channels.

These include allocations from the Federation Allocation Account Committee (FAAC), the Economic and Financial Crimes Commission (EFCC), and the Tertiary Education Trust Fund (TETFund).

Of that figure, ICPC said N44.2 billion had been disbursed to 299 beneficiary institutions, covering 293,178 students.

Oluwatuyi said no funds have been stolen under the current student loan scheme, which officially launched its application portal in 2024.

“All institutional fees are paid directly to verified institutions, while upkeep allowances go into the verified bank accounts of eligible students,” she said.

“The reports circulating in the public space are based on outdated figures and previous interventions that predate our operations.”

The communications director said NELFund operates an automated loan system to eliminate the possibility of financial misconduct.

Every application and disbursement, according to her, is digitally tracked, time-stamped, and verifiable.

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has called for a review of the revenue allocation formula to ensure that funds are disbursed directly from the Federation Account to local government chairmen, in accordance with the recent Supreme Court ruling affirming local government financial autonomy.

RMAFC arrived at this decision at the end of a workshop in Akwa Ibom State. In a communiqué, the commission said that it aligns itself with the Supreme Court’s judgement of July 11, 2024, on local government financial autonomy, considering the fact that the current formula has been in existence for about 16 years.

The communiqué also called for a constitutional amendment to allow the inclusion of the local government chairmen and councillors among the beneficiaries of the remuneration package listed in the 1999 Constitution, as amended.

It stated that Section 162(6) of the Constitution should be amended to ensure that the allocations of the local governments are paid directly to them from the Federation Account, in line with the Supreme Court’s ruling delivered on July 11, 2024, on local government financial autonomy.

The communiqué called for the amendment of Section 162(2) to establish a clear timeline for presidential submission of RMAFC proposals to the National Assembly.

Besides, the commission called for the establishment of a National Revenue Dashboard for digital, real-time revenue tracking.

“The commission should advocate the amendment of the relevant sections of the Petroleum Industry Act (PIA) to expand the composition of the board of the Nigerian National Petroleum Corporation (NNPC) Limited to include representatives of states, local governments, and the Central Bank of Nigeria (CBN); creation of a distinct Office of the Accountant-General of the Federation, separate from that of the Federal Government,” it said.

The commission, in the communiqué, said it would intensify its constitutional mandate of monitoring revenue accruals to ensure that all revenues due to the Federation Account are remitted accurately and promptly by the revenue-generating agencies.

The communiqué also stated that, according to the spirit and letter of the Constitution, the advice of the RMAFC on the remuneration package of political, public, and judicial office holders is binding on the federal and state governments.

The retreat was attended by top federal and state officials, such as the Vice President, Senator Kashim Shettima, represented by Dr. Ibrahim Muhammad Natagwandu, and the Executive Governor of Akwa Ibom State, Pastor Umo Bassey Eno who delivered a goodwill message; the chairman of the Nigerian Governors Forum, Abdulrahman Abdulrazaq; chairman, Senate Committee on National Planning and Economic Affairs, Senator Yahaya Abdullahi and other distinguished personalities.

Peter Obi, presidential candidate of the Labour Party (LP) in the 2023 elections, says investing in the youth is an effective way to address the shortage of skilled work force in the country.

In a statement posted on his X page on Thursday to commemorate International Workers’ Day, Obi praised Nigerian workers for their resilience in the face of harsh economic and political conditions.

“The struggles and harsh realities facing our dear workers in our nation, presently contending with severe economic and political challenges, are obvious,” Obi said.

“Despite these very challenging times, our Nigerian workers have continued to show resilience and commitment to the nation’s growth.

“Notwithstanding the recent reconfiguration of our economic indices, the reality is that today, Nigeria has unemployment and under-employment rate of over 35% and youth unemployment and under-employmemt rate of over 45% which is one of the highest globally, fueling all sorts of criminality and social vices.

“Aggressive investment in the productive population remains the best and fastest route to bridging this shortage of well-trained workers and moving our nation from consumption to production.”

Obi called for targeted investment in the population, especially the youth, to shift the country from a consumption-based economy to a productive one.

“As I have often said, we can build a productive economy by investing in education, healthcare, and poverty reduction through job creation and small business support,” he added.

The former Anambra state governor urged the government to create an enabling environment that offers opportunities and fair wages, while also recognising the value of honest labour.