NELFUND CLEARS UNIABUJA OF STUDENT LOAN DIVERSION ALLEGATIONS
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By: Balogun Ibrahim
The Nigerian Education Loan Fund (NELFUND) on Friday addressed recent media reports alleging the diversion of student loan funds at the University of Abuja, stating that there is no verified evidence to substantiate the claims.
In a statement issued by its Director of Strategic Communications, Oseyemi Oluwatuyi, the Fund said it had noted the circulating allegations but clarified that no established proof exists indicating that the university diverted, misappropriated, or unlawfully withheld NELFUND disbursements.
“NELFUND wishes to state clearly that, as of this moment, there is no verified evidence before the Fund establishing that the University of Abuja has diverted, misappropriated, or unlawfully withheld NELFUND disbursements,” the statement partly read.
The Fund added that it follows a structured disbursement and reconciliation framework in line with its statutory mandate.
According to the statement, NELFUND disburses funds through established institutional channels, with robust compliance measures to ensure accountability and transparency.
“NELFUND operates a structured disbursement and reconciliation framework in line with its statutory mandate. Funds are released through established institutional channels, and compliance mechanisms are in place to ensure accountability and transparency,” the statement added.
The agency further noted that if any issues arise regarding the timing of student account credits or institutional reconciliation processes, it engages directly with the relevant institution to address and resolve them administratively, following due process.
“Where concerns arise regarding the timing of student account credits or institutional reconciliation processes, NELFUND engages directly with the relevant institution to clarify and resolve such matters administratively and in line with due process,” the statement said.
The Fund stressed that media reports should not be treated as confirmed findings, noting its reliance on verified documentation and formal audit procedures.
“It is important to emphasize that allegations reported in the media do not constitute established findings. NELFUND remains committed to relying strictly on verified documentation, formal reconciliation procedures, and audit mechanisms in addressing any issues relating to its disbursement processes,” the statement added.
Reaffirming its mandate, NELFUND said it is committed to protecting the interests of eligible Nigerian students and ensuring that all disbursements comply with the law.
“NELFUND will continue to work collaboratively with all partner institutions to uphold transparency, accountability, and the integrity of the student loan programme,” the Fund stated.
The reaction comes after an earlier report by an online news platform, Peoples Gazette, alleging that the Vice-Chancellor of the University of Abuja, Professor Hakeem Fawehinmi, and other senior officials diverted multibillion-naira NELFUND grants intended for indigent students, according to The Media.
An online report claimed that the Nigerian Education Loan Fund (NELFUND) disbursed N256,142,500 to the University of Abuja on January 29, 2026, as institutional fee loans for 2,245 students approved for the 2025/2026 academic session.
The report further alleged that the funds were placed in interest-yielding accounts and that hundreds of students were shortchanged.
However, the university denied the allegations in a statement signed by its Acting Director of Information and University Relations, Habib Yakoob.
“The university categorically states that these claims are false, misleading, and mischievous, as the report lacks any evidence to identify how or where the funds were supposedly diverted,” the statement said.
The institution confirmed it received N256,142,500 from NELFUND on January 29, 2026, for 2,245 beneficiaries but stressed that disbursements are strictly based on student applications.
“It is important to note that disbursement of the NELFUND loan is processed only upon student application,” the statement added.
University management also explained that some students had paid their fees before the funds were received due to concerns about potentially losing the academic session.
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