NELFUND Rebuts Allegations of Student Loan Diversion at University of Abuja

The Nigerian Education Loan Fund (NELFUND) has formally dismissed allegations of student loan diversion at the University of Abuja, clarifying that no verified evidence exists to suggest any misappropriation or unlawful withholding of funds by the institution.

In a statement released on February 13, 2026, the Fund’s Director of Strategic Communications, Mrs. Oseyemi Oluwatuyi, emphasized that NELFUND operates through a structured disbursement and reconciliation framework. This system ensures that funds are released through established institutional channels backed by compliance mechanisms designed for transparency and accountability.

The agency noted that while media reports had alleged the university diverted a disbursement of ₦256,142,500 intended for 2,245 students, these claims do not constitute established findings.

Advertisement

NELFUND confirmed that it engages directly with institutions to resolve administrative concerns regarding the timing of student credits or reconciliation processes.

The University of Abuja management also addressed the issue, explaining that some students had paid their fees before the loan was received on January 29, 2026, and are currently being processed for reimbursements upon application.

From a macroeconomic perspective, the student loan scheme serves as a macro-stabilizer for the education sector by removing financial barriers to human capital development.

Advertisement

Since its inception, the Fund has reached a total disbursement of ₦184 billion as of mid-February, covering institutional fees and monthly upkeep for approximately one million beneficiaries across 265 tertiary institutions. With applications now exceeding 1.59 million, the steady growth of the scheme highlights a significant rate of uptake among Nigerian youth seeking to secure their academic future.

The fiscal health of the program is maintained through a zero-interest model that provides a liquidity of opportunity for students from various backgrounds.

Managing Director Akintunde Sawyerr has reiterated that the security of the mandate to manage government funds requires strict adherence to verified documentation and formal audit procedures.

By negotiating with universities to ensure that students awaiting disbursements are not prevented from writing examinations, NELFUND is protecting the democracy dividend and ensuring that the infrastructure of distribution for education remains inclusive and resilient against asymmetric threats to student welfare.