By Yusuf Danjuma Yunusa
The Nigerian Education Loan Fund (NELFUND) has dismissed 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 media reports circulating on the matter but clarified that no established proof currently 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 said.
The agency explained that its operations are governed by a structured disbursement and reconciliation framework in line with its statutory mandate. According to NELFUND, funds are released through established institutional channels, with compliance mechanisms embedded 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.
The Fund added that where concerns arise regarding the timelines for crediting student accounts or reconciling institutional records, it engages directly with the affected institution to address such issues administratively and in accordance 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 noted.
NELFUND emphasised that media allegations should not be interpreted as confirmed findings, stressing that its actions are guided strictly by verified documentation, formal reconciliation procedures and audit mechanisms.
“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 said.
Reaffirming its mandate, the Fund maintained that it remains committed to safeguarding the interests of eligible Nigerian students and ensuring that all disbursements comply with the law.
The response followed a report by online news platform Peoples Gazette, which alleged 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 report, 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. It further alleged that the funds were lodged in interest-yielding accounts and that hundreds of students were shortchanged.
However, the University of Abuja denied the allegations in a separate statement signed by its Acting Director of Information and University Relations, Habib Yakoob, describing the claims as false and misleading.
“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 controversy has since drawn attention to the administration and oversight of the federal student loan programme, as stakeholders call for clarity and transparency in the disbursement process.
