The Nigerian Education Loan Fund (NELFUND) on Friday dismissed recent media claims alleging the diversion of student loan funds at the University of Abuja, stating that “there is no verified evidence before the Fund establishing that the University of Abuja has diverted, misappropriated, or unlawfully withheld NELFUND disbursements.”
In a statement by its Director of Strategic Communications, Oseyemi Oluwatuyi, the Fund noted that it had taken note of circulating allegations but clarified that no established proof exists to support the claims.
“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 read.
The Fund added that any concerns over delays in crediting student accounts or institutional reconciliation are addressed directly with the relevant institutions. “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 continued.
NELFUND stressed that media reports should not be treated as verified findings, adding: “It is important to emphasise 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 agency reaffirmed its commitment to protecting the interests of eligible students and ensuring compliance 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,” it stated.
The reaction follows a report by Peoples Gazette alleging that the Vice-Chancellor of the University of Abuja, Professor Hakeem Fawehinmi, and other officials diverted multibillion-naira NELFUND grants intended for indigent students. The report claimed that NELFUND disbursed N256,142,500 to the university on January 29, 2026, for 2,245 students, but that funds were lodged in interest-yielding accounts, shortchanging some students.
The University of Abuja denied the claims 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 receipt of N256,142,500 from NELFUND for 2,245 beneficiaries, noting 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 added, explaining that some students had paid their fees early to avoid losing the academic session.