Agency denies UniAbuja fund mismanagement
The Nigerian Education Loan Fund (NELFUND) has officially responded to viral claims regarding the alleged diversion of student loans at the University of Abuja.
In a detailed statement, the agency clarified that all funds disbursed to the institution were handled in strict accordance with the law. They dismissed the reports as “false and mischievous,” designed to tarnish the reputation of the university’s new leadership.
According to the agency, a total of N256 million was released to the University of Abuja on January 29, 2026, for over 2,200 eligible students. These funds were intended to cover tuition fees for students who had successfully applied for the federal loan. NELFUND emphasized that the disbursement process is transparent and can be verified through their digital portal.
Clarifying the reimbursement process for students
One of the primary sources of confusion was the issue of students who had already paid their fees before the loan was disbursed. The University of Abuja management explained that these students are being processed for full reimbursements. They were advised to submit formal applications to ensure that the NELFUND payments are applied to their accounts or returned to them as needed.
The Vice-Chancellor, Professor Hakeem Babatunde Fawehinmi, has maintained a “student-centered” approach since assuming office in late 2025. He noted that the university has no reason to “hoard” or generate interest from funds meant for student welfare. He described the online reports as an attempt by “detractors” to cause unnecessary alarm within the academic community.
Ensuring transparency in the student loan scheme
NELFUND has warned the public against circulating unverified information that could discourage students from applying for the loan. The agency noted that the scheme is a “lifeline” for many brilliant but indigent Nigerians who would otherwise drop out of school. To enhance transparency, they plan to publish regular reports on disbursements to various institutions across the country.
Beneficiaries are reminded that the loan is interest-free and that repayment only begins once they secure gainful employment. This policy is designed to reduce the financial burden on graduates in a competitive job market. The agency is also working on a “whistleblower” mechanism where students can report any suspected irregularities in the management of their loans.
Building a sustainable future for Nigerian education
The successful implementation of the student loan scheme is a key pillar of the “Renewed Hope” agenda in the education sector. By ensuring that funds reach the intended beneficiaries, NELFUND aims to democratize access to higher education. The University of Abuja remains a strategic partner in this mission, despite the recent media controversies.
As the program expands to more universities and polytechnics, the agency must remain vigilant against administrative bottlenecks. Clear communication between the fund, the institutions, and the students is essential to avoid misunderstandings. For the thousands of students at UniAbuja, the focus now shifts back to their studies as the loan crisis is officially put to rest.
