The Managing Director of the Nigerian Education Loan Fund (NELFUND), Akintunde Sawyerr, has rejected allegations of financial misappropriation linked to the disbursement of student loans at the University of Abuja.

NELFUND said there was no verified evidence establishing that the University of Abuja had diverted, misappropriated or unlawfully withheld funds disbursed under the student loan scheme.

The Fund made its position known in a statement issued by its Director of Strategic Communications, Oseyemi Oluwatuyi, following media reports alleging that NELFUND funds meant for students had been diverted by officials of the university.

The reports centred on ₦256.14 million reportedly disbursed by NELFUND to the University of Abuja on January 29, 2026, for 2,245 students approved to benefit from institutional fee loans for the 2025/2026 academic session.

The allegations claimed that some university officials had diverted or mismanaged the funds and that some of the money was kept in interest-yielding accounts, while some beneficiaries were allegedly shortchanged.

However, NELFUND dismissed the claims, stressing that allegations reported in the media should not be treated as established findings without verified evidence.

The Fund explained that it operates a structured disbursement and reconciliation system under which funds are released through established institutional channels, with compliance mechanisms designed to promote accountability and transparency.

NELFUND added that where concerns arise over delays in crediting students’ accounts or discrepancies in institutional reconciliation, it engages directly with the affected institution to investigate and resolve such matters through established administrative procedures.

The agency said it relies on verified documentation, formal reconciliation procedures and audit mechanisms when addressing concerns relating to its disbursement processes.

The University of Abuja has also strongly rejected the allegations. Its management described the claims as false and misleading, insisting that no NELFUND funds had been diverted, hoarded, misused or used to generate interest.

The university confirmed receiving the ₦256.14 million meant for 2,245 beneficiaries but explained that disbursement is processed based on students’ applications.

According to the university, some students had already paid their school fees before the NELFUND funds arrived because they feared losing the academic session. Those students were subsequently advised to apply for reimbursement, with their applications being processed.

The University of Abuja Governing Council also backed the management, dismissing the allegations as lacking factual basis. The council said the institution operates within established financial regulations and maintains internal controls to ensure transparency and due process in the management of intervention funds.

NELFUND said it remains committed to protecting eligible Nigerian students and ensuring that all student-loan disbursements are applied in accordance with the law.

The Fund further pledged to continue working with partner institutions to strengthen transparency, accountability and the integrity of the student-loan programme.

The agency also stressed the importance of proper communication between tertiary institutions and beneficiaries, particularly where loan funds have been released to institutions on behalf of students.

The controversy comes amid growing public interest in the management of Nigeria’s student-loan scheme, which was introduced to expand access to tertiary education by providing financial support to eligible students.

The student-loan programme is designed to reduce the financial burden of tertiary education on students and their families, making transparency in the handling of public funds particularly important to maintaining confidence in the scheme.

For now, NELFUND maintains that there is no verified evidence of financial diversion or misappropriation at the University of Abuja, while the university has similarly denied the allegations.

Both institutions have indicated that proper documentation, reconciliation and established financial procedures remain the basis for resolving any concerns surrounding the disbursement of the funds.