No naira missing, every NELFUND payment traceable, says CEO Sawyerr

The Nigerian Education Loan Fund (NELFUND) has dismissed allegations of financial misappropriation, with its Managing Director and Chief Executive Officer Akintunde Sawyerr insisting that all disbursements are fully traceable. He spoke yesterday on national television against the backdrop of concerns over the agency's transparency and accountability.

Sawyerr said the electronic nature of NELFUND's disbursement system makes it possible to track the movement of funds from the Central Bank of Nigeria (CBN) to beneficiary institutions and students. He also linked the government's funding of NELFUND to the redirection of resources towards welfare programmes after the removal of fuel subsidy.

No opacity in NELFUND operations

“There is no evidence of any financial misappropriation by NELFUND. The reality of it is that for people to take a loan, there has to be some capital they can draw on,” Sawyerr added.

He cited the recent disbursement of more than N1 billion to the University of Ibadan as proof of the system's transparency. Institutional fees are transferred directly to beneficiary institutions, while students' upkeep allowances are paid straight into their personal bank accounts.

“The University of Ibadan students, before NELFUND, probably had a very high dropout rate because they just didn't have access to capital to go to school. Now, the President introduced NELFUND; we paid, I believe, over a billion naira to the University of Ibadan recently. And those funds are transferred directly to the institution. So, where is the opacity in that?” he said.

Electronic payments are traceable

“The transfers of money are done electronically. It's entirely traceable. The money leaves the Central Bank of Nigeria and goes either to the institution, the University of Ibadan, or in the case of upkeep, goes directly to the students in their bank accounts,” Sawyerr said.

He described allegations that NELFUND's financial operations were opaque as misleading, but promised to examine the research or evidence behind such claims. “It sounds a little bit like mischief to me. But again, I'd need to interrogate this research that was done,” he said.

Application system free from favouritism

Sawyerr also defended the integrity of NELFUND's student selection process. He said the electronic application system was designed to eliminate favouritism, ethnic considerations and the influence of personal connections.

Applicants are assessed against established eligibility requirements, including a National Identification Number (NIN), Joint Admissions and Matriculation Board (JAMB) registration details, admission and matriculation numbers, and a bank account.

“We receive applications electronically. The system doesn't recognise whether you're male, female, whether you're Igbo, Hausa, Yoruba, Fulani, Ibibio, or Ogoja,” he said. Sawyerr stressed that applicants do not need to know or have connections with NELFUND officials before accessing the scheme.

For Nigerian students and families, the assurances from NELFUND's CEO point to a loan system built on direct, electronic transfers, reducing the room for intermediaries to divert funds meant for education.