By Erewunmi Peace

The University of Abuja (UniAbuja) is at the centre of a brewing controversy after an online media report claimed that senior officials, including the Vice-Chancellor, were involved in diverting funds from the Nigerian Education Loan Fund (NELFUND) that were meant to assist indigent students with tuition fees.

According to the online report, Prof. Hakeem Fawehinmi, the Vice-Chancellor, alongside the Dean of Students’ Affairs and other university officials, allegedly withheld and mismanaged multibillion-naira NELFUND disbursements, forcing students to pay fees out of pocket despite the funds being released to the institution. The report further claims that the disbursements were kept in interest-yielding accounts and not promptly released to beneficiaries, leading to confusion and hardship among students.

UniAbuja Denies Allegations

In a public statement, the university management categorically rejected the diversion claims, describing them as false, misleading and without evidence. According to the statement, no NELFUND funds were diverted, hoarded, misused, or used to earn interest.

The management also explained that:

A ₦256,142,500 NELFUND disbursement received on January 29, 2026, for 2,245 students was processed in line with NELFUND regulations.

Some students paid fees before the disbursement out of fear of delays; those students have been or are being reimbursed upon proper application.

Unclaimed funds remain securely held and will be released once eligible applicants submit and complete required steps.

The statement urged the public to rely on verified information and dismissed the report as an attempt to undermine the university’s reputation.

Broader Student Loan Context

The Nigeria Education Loan Fund (NELFUND) is a government-backed scheme designed to provide interest-free student loans, covering tuition and upkeep expenses for eligible students at Nigerian tertiary institutions. The programme continues to expand, with recent large disbursements to universities such as the University of Lagos, which confirmed receiving ₦1.33 billion for over 6,300 students for the 2025/2026 session.

NELFUND has previously acknowledged challenges like operational delays and data issues affecting some disbursements, but insists the system is transparent and that funds are disbursed only upon verified application.

What Happens Next

At this stage:

•The allegations remain claims reported by an online outlet.

•Peoples Gazette Nigeria
The university has officially denied any wrongdoing with a detailed rebuttal.

•No independent confirmation from NELFUND or anticorruption agencies has publicly confirmed

misappropriation of funds in this specific case.

Observers say the matter may attract further scrutiny from relevant agencies depending on ongoing student complaints and official investigations.