NELFUND dismisses UNIABUJA student loan diversion claims

The Nigerian Education Loan Fund (NELFUND) has cleared the University of Abuja of allegations that it diverted student loan funds, saying there is no verified evidence to support the claims circulating in the media.

In a statement issued on Friday by its Director of Strategic Communications, Oseyemi Oluwatuyi, the Fund said it had reviewed the reports but found no proof that the university misappropriated or unlawfully withheld any of its disbursements. NELFUND explained that it operates a structured disbursement and reconciliation system, with funds released through official institutional channels and backed by compliance measures to ensure accountability and transparency.

The agency noted that when concerns arise over delays in crediting student accounts or reconciling payments, it engages directly with the institution involved to resolve the issues through due process. It stressed that media allegations should not be treated as established findings, adding that its actions are guided strictly by verified documentation, formal reconciliation procedures, and audit mechanisms.

NELFUND reaffirmed its commitment to safeguarding the interests of eligible students and ensuring that all loan disbursements comply with legal and regulatory standards, while continuing to work with partner institutions to maintain the integrity of the programme.

The clarification follows a report by Peoples Gazette which alleged that the university’s Vice-Chancellor, Hakeem Fawehinmi, and other officials diverted billions of naira meant for indigent students. The report claimed that N256.1 million disbursed to the institution for 2,245 students was placed in interest-yielding accounts, leaving some beneficiaries shortchanged.

However, the university denied the accusations, describing them as false and misleading. It confirmed receiving the funds on January 29, 2026, but said disbursement is strictly based on individual student applications, noting that some students had already paid their fees before the loan payments arrived to avoid losing the academic session.