The Nigerian Education Loan Fund (NELFUND) has dismissed 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 on Friday by its Director of Strategic Communications, Oseyemi Oluwatuyi, the Fund said it had taken note of the allegations circulating in the media but maintained that no proof had been established indicating that the University of Abuja diverted, misappropriated, or unlawfully withheld any disbursement.
“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 its disbursement system follows a structured framework in line with its statutory responsibilities.
“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 continued.
According to the Fund, when issues arise regarding timelines for crediting student accounts or institutional reconciliation, it engages directly with the concerned institution to address them administratively.
“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.
NELFUND emphasised that allegations reported in the media should not be treated as confirmed findings, stressing its reliance on documented verification and formal audit processes.
“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 statement further noted.
Reaffirming its mandate, the Fund said it remains focused on safeguarding the interests of eligible Nigerian students and ensuring 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,” it stated.
The reaction followed an earlier report by online platform 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, as institutional fee loans for 2,245 students approved for the 2025/2026 academic session, alleging that the funds were lodged in interest-yielding accounts and that some students were shortchanged.
However, the university denied the allegations in a separate 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 on January 29, 2026, for 2,245 beneficiaries but explained that loan disbursement is strictly application-based.
“It is important to note that disbursement of the NELFUND loan is processed only upon student application,” the statement added.
University management further clarified that some students had already paid their fees before the funds were received, fearing they might lose the academic session.
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