NELFUND Denies Diversion of Student Loans at University of Abuja

The Nigerian Education Loan Fund has denied allegations that student loan funds were diverted at the University of Abuja.

This is according to a statement issued on February 13, 2026, by Mrs. Oseyemi Oluwatuyi, Director of Strategic Communications at the Nigerian Education Loan Fund.

The clarification follows recent media reports alleging that disbursements meant for students of the institution were misapplied or unlawfully withheld.

What NELFUND said 

According to the statement titled “Allegations Concerning Disbursement of NELFUND Student Loans at the University of Abuja,” the Fund said it has taken note of recent reports alleging diversion of student loan disbursements at the University of Abuja.

However, NELFUND stressed that as of the time of the statement, there was no verified evidence before it establishing that the institution had diverted, misappropriated, or unlawfully withheld its disbursements.

The Fund stated that it operates a structured disbursement and reconciliation framework in line with its statutory mandate, adding that funds are released through established institutional channels.

NELFUND explained that compliance mechanisms are embedded in its processes to ensure accountability and transparency.

• “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 read.

She emphasised that allegations reported in the media do not amount to established findings, noting that the Fund relies strictly on verified documentation, formal reconciliation procedures and audit mechanisms in addressing matters related to disbursement.

Backstory

In the days leading up to the clarification, an online news outlet published a report claiming that senior officials at the University of Abuja, including the Vice-Chancellor, Professor Hakeem Fawehinmi, and other top administrators, had diverted funds from a NELFUND student loan package meant for indigent students.

The report said the school received about N256.1 million on January 29, 2026, intended to cover institutional fees for 2,245 approved beneficiaries in the 2025/2026 academic session. It alleged that a portion of those funds was lodged in interest-bearing accounts instead of being fully credited to student accounts, and that many students were effectively shortchanged as a result.

That online report also referenced an internal memo suggesting that students who had not yet paid their fees were advised to pay upfront and then seek reimbursement, which critics interpreted as a sign of administrative confusion or mismanagement.

More insights 

The Fund reiterated its commitment to protecting the interests of eligible Nigerian students and ensuring that all disbursements are applied in accordance with the law.

It also stated that it will continue to work collaboratively with partner institutions to uphold transparency, accountability and the integrity of the student loan programme.

NELFUND encouraged students and the public to channel inquiries or concerns through its official communication platforms for clarification.

What you should know 

Recall that in 2025, the Independent Corrupt Practices and Other Related Offences Commission began a detailed investigation after some outlets claimed that only a small portion of the funds released had reached students and that large sums were unaccounted for.

• The ICPC said that while about N100 billion was reportedly released for the programme, only around N28.8 billion had been confirmed as disbursed to students at the time, leaving a gap of about N71.2 billion that drew scrutiny from lawmakers and watchdogs.
• In response, NELFUND and its management denied that any funds under the current student loan scheme were mismanaged or missing, insisting that figures circulating in the public referred to older financing programmes that predated the launch of the NELFUND portal in 2024.
• As of February 1, 2026, NELFUND has disbursed a total of N183.89 billion under the scheme. Out of this amount, N107.09 billion has been paid toward institutional fees, while N76.80 billion has been disbursed as upkeep allowances to students.

The Fund said 265 institutions have benefited from the loan disbursement process so far.

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