The Managing Director of the Nigerian Education Loan Fund (NELFund), Akintunde Sawyerr, has expressed concern that allegations of corruption and fund mismanagement have negatively impacted public trust in the student loan scheme.

Speaking on Wednesday before the House of Representatives Committee on Student Loans, Sawyerr addressed recent reports that 51 tertiary institutions were implicated in illegal deductions related to the fund. He noted that a statement issued by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) initially suggested that NELFund may have diverted disbursed funds.

Sawyerr said the NELFund swiftly responded to the claims, knowing the potential damage such allegations could cause. “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,” he said.

Following NELFund’s reaction, the ICPC retracted its earlier assertion, clarifying that there were no discrepancies in the student loan disbursements by the scheme. However, the commission maintained its stance on irregularities within the broader education sector and participating institutions.

Sawyerr insisted that NELFund maintains a transparent process in handling loan disbursements and affirmed the agency’s commitment to accountability.

Committee Chairman Ifeoluwa Ehindero acknowledged the gravity of the situation, stating that lawmakers had received multiple reports of alleged fund diversion and required clear explanations.