NELFUND DENIES VERIFIED EVIDENCE OF LOAN DIVERSION AT UNIVERSITY OF ABUJA
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By Aishat Momoh. O.
The Nigerian Education Loan Fund (NELFUND) has dismissed allegations of student loan diversion at the University of Abuja, stating that there is no verified evidence to support the claims.
In a statement issued on Friday by its Director of Strategic Communications, Oseyemi Oluwatuyi, the Fund said it had taken note of media reports alleging misappropriation of disbursed funds but clarified that no established proof exists implicating the university.
“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 agency explained that it operates a structured disbursement and reconciliation framework in line with its statutory mandate, with funds released through established institutional channels and compliance mechanisms 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,” it stated.
According to the Fund, when concerns arise regarding timelines for crediting student accounts or institutional reconciliation processes, it engages directly with the relevant institution to resolve such issues administratively and in line with due process.
“Where concerns arise regarding timelines of crediting student accounts or institutional reconciliation processes, NELFUND engages directly with the relevant institution to clarify and resolve such matters administratively and in accordance with due process,” the statement added.
The Fund emphasised that media allegations should not be interpreted as confirmed findings, reiterating its reliance on verified documentation, formal reconciliation procedures and audit mechanisms.
“It is important to emphasise that allegations reported in the media do not constitute established findings,” it said.
Reaffirming its mandate, NELFUND pledged to continue protecting the interests of eligible Nigerian students and ensuring that all disbursements comply strictly with the law.
The reaction follows an earlier report by Peoples Gazette alleging that the Vice-Chancellor of the University of Abuja, Professor Hakeem Fawehinmi, and other senior officials diverted multibillion-naira NELFUND grants meant for indigent students.
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The report claimed that NELFUND disbursed ₦256,142,500 to the university on January 29, 2026, as institutional fee loans for 2,245 students approved for the 2025/2026 academic session, and alleged that the funds were placed in interest-yielding accounts while some 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 read.
The institution confirmed receiving ₦256,142,500 from NELFUND on January 29, 2026, for 2,245 beneficiaries but stressed that disbursement is strictly application-based.
“It is important to note that disbursement of the NELFUND loan is processed only upon student application,” the university stated, explaining that some students had paid their fees before the funds were received to avoid losing the academic session.
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