The Managing Director of the Nigerian Education Loan Fund, NELFUND, Akintunde Sawyerr, has dismissed allegations of financial misappropriation within the agency, insisting that there is no evidence to substantiate the claims.
According to a report by ARISE NEWS, Sawyerr made the clarification during an interview with the station on Monday, where he explained that NELFUND requires adequate capital to provide loans and other financial support to students across the country.
He said the establishment and funding of the student loan scheme formed part of the Federal Government’s broader welfare intervention following the removal of fuel subsidy, which he said allowed government to redirect resources towards programmes aimed at supporting vulnerable Nigerians.
“There is no evidence of any financial misappropriation by NELFUND. The reality of it is that in order for people to take a loan, there has to be some capital they can draw on,” Sawyerr said.
He also defended the transparency of NELFUND’s financial operations, rejecting claims that the agency’s disbursement process was opaque.
According to him, payments to tertiary institutions and students are made electronically and can be tracked throughout the process.
Sawyerr disclosed that NELFUND recently transferred more than N1 billion to the University of Ibadan to support students, while upkeep allowances were paid directly into beneficiaries’ bank accounts.
He explained that funds allocated for institutional charges are transferred directly to the relevant institutions, while student upkeep payments go directly to the accounts of beneficiaries, eliminating the need for cash transactions.
“The transfers of money are done electronically. It’s entirely traceable,” he said, adding that funds move from the Central Bank of Nigeria to institutions or directly to students depending on the nature of the payment.
Sawyerr questioned the description of the scheme as lacking transparency, saying the electronic nature of the transactions provides an audit trail for the movement of funds.
He further said NELFUND had helped address financial barriers that previously contributed to students dropping out of tertiary institutions.
Speaking on the fairness of the beneficiary selection process, the NELFUND boss said the application system was completely electronic and designed to operate without favouritism.
He said the system does not consider applicants’ ethnicity, gender, personal relationships or political connections when determining eligibility.
According to Sawyerr, applicants are required to meet specific conditions, including having a National Identification Number, NIN, a Joint Admissions and Matriculation Board, JAMB, registration number where applicable, evidence of admission and a valid bank account.
He stressed that NELFUND does not make cash payments, as all transactions are processed through the electronic system.
“The system doesn’t care whether you’re friends with the Managing Director or in-laws with the Executive Director. It doesn’t care,” Sawyerr said.
He maintained that the system was designed to ensure that eligible Nigerian students can access financial assistance based on established requirements rather than their background, connections or identity.
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