The Nigerian Education Loan Fund (NELFUND) on Friday responded to recent media reports alleging the diversion of student loan funds at the University of Abuja, stating that there is no verified evidence to support the claims.
In a statement issued by its Director of Strategic Communications, Oseyemi Oluwatuyi, the Fund stated that it had taken note of the allegations circulating in the media but clarified that no established proof exists to suggest that the University of Abuja diverted, misappropriated, or unlawfully withheld its 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 explained that it operates a structured disbursement and reconciliation framework in line with its statutory mandate.
According to the statement, funds are released through established institutional channels, with compliance mechanisms in place 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 continued.
The agency noted that when concerns arise regarding the timelines for crediting student accounts or institutional reconciliation processes, it engages directly with the relevant institution to clarify and resolve such matters 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 added.
The Fund stressed that media allegations should not be regarded as confirmed findings, emphasising its reliance on verified documentation and formal audit procedures.
“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 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,” it stated.
The reaction followed 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 meant for indigent students.
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.
It further alleged that the funds were lodged 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 read.
The institution confirmed receipt of ₦256,142,500 from NELFUND on January 29, 2026, for 2,245 beneficiaries, but maintained that 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.
Management explained that some students had paid their fees before the funds were received out of concern that they might lose the academic session.
The PUNCH