EFCC Warns VCs: Steer Clear of Corruption, Protect Student Loan Funds

Abuja, Nigeria – The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has issued a stern warning to Vice-Chancellors of Federal and State Universities, urging them to avoid practices that could land them in EFCC interrogation rooms. This caution was delivered during a strategic meeting in Abuja involving the EFCC, Vice-Chancellors, and the National Universities Commission (NUC).

Olukoyede revealed that the EFCC will now intensify its monitoring of university budgets and fund allocations for development, citing a “critically low” fraud risk assessment in the sector. He specifically highlighted a lack of due diligence in contract awards. “Developing the education sector is key,” Olukoyede stated. “There’s no way a nation will develop without investing in education. There will never be a time when resources will be enough, but the best way to appreciate what we have is to manage it with utmost accountability.”

The EFCC boss emphasized that prevention is paramount in fighting financial crimes. “By virtue of my belief, prevention is key. You don’t always have to wait for money to be stolen before taking action.” He also cautioned that claims of ignorance regarding financial crimes would not be accepted as a defense.

Spotlight on NELFUND

A significant focus of the meeting was the Nigerian Education Loan Fund (NELFUND). Olukoyede reaffirmed the EFCC’s commitment to ensuring that every kobo allocated for the student loan scheme reaches its intended beneficiaries. He disclosed that a substantial portion of NELFUND’s seed fund was sourced from recovered proceeds of crime, with presidential approval.

“It will be a crime against humanity if recovered loot is re-looted again,” Olukoyede asserted. “It’s a fight to the finish and we will not allow that to happen… We must ensure that every dime, every kobo meant to support the educational sector and Nigerian students gets to where it ought to be.” He linked the judicious use of these funds to preventing school dropouts and curbing youth involvement in criminal activities, stressing the strong nexus between lack of education and poverty. Recent reports have already indicated that some universities and financial institutions are being investigated by the National Orientation Agency (NOA) and NELFUND for allegedly withholding or delaying student loan disbursements, despite funds being released.

Common Financial Infractions and Call for Internal Controls

The Director of Investigation at the EFCC, Mr. Abdulkarim Chukkol, provided a detailed breakdown of common financial infractions reported in universities. These include:

1.Procurement and contract fraud

2.Payroll and salary fraud

3.Unauthorized allowances

4.Admission and transcript fraud

5.Abuse of Internally Generated Revenue (IGR)

6.Research grant mismanagement

7.Fictitious projects

8.Cash-for-grade schemes

Chukkol advised Vice-Chancellors to implement robust internal control measures and remain vigilant to avoid pitfalls that could jeopardize their careers and institutions.

NUC and NELFUND Echo Warnings

Professor Abdullahi Yusufu Ribadu, the Executive Secretary of the NUC, explained that the meeting was convened at President Bola Tinubu’s request to enhance accountability, integrity, and good governance in the education sector. He commended the EFCC Chairman for repositioning the Commission as both an enforcement and a preventive agency.

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Mr. Akintunde Sawyer, the Managing Director of NELFUND, underscored the critical importance of a precise and transparent disbursement process for the fund. “We can’t cut corners or take shortcuts. We must get the process right. Not just for investigation purposes but to ensure robust disbursement systems that prevent abuse.” NELFUND, established under the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024, aims to provide interest-free loans for tuition, fees, and upkeep to qualified Nigerian students in public tertiary institutions. It is reportedly funded by the Federal Inland Revenue Service (FIRS) and the Tertiary Education Trust Fund (TETFUND), with a significant allocation also in the 2025 budget.

The meeting concluded with Vice-Chancellors having the opportunity to share their experiences concerning financial matters, signaling a collaborative approach to tackling corruption in the nation’s universities.