NELFUND clears UNIABUJA student loan diversion allegations
Nigeria’s student loan regulator, the Nigerian Education Loan Fund (NELFUND), has officially cleared the University of Abuja (UNIABUJA) of allegations that it diverted student loan funds meant for indigent beneficiaries, affirming that no verified evidence exists to support claims of financial misconduct by the institution.
The clarification follows a controversy sparked by media reports alleging that UNIABUJA officials diverted NELFUND student loan funds and withheld financial support intended for eligible students. However, after reviewing available documentation and conducting internal reconciliation procedures, NELFUND cleared UNIABUJA of student loan diversion allegations, emphasizing that the agency relies strictly on verifiable audit records and formal disbursement processes. 
The development marks a critical intervention by the federal government’s student loan agency, reinforcing transparency and restoring confidence in the newly introduced national student loan programme.
Background: Allegations That Triggered National Concern
The controversy began when reports emerged alleging that UNIABUJA had improperly handled student loan funds disbursed under the NELFUND scheme. According to available records, NELFUND had disbursed ₦256,142,500 to UNIABUJA on January 29, 2026, covering institutional fees for 2,245 approved student beneficiaries, NELFUND clears UNIABUJA student loan diversion allegations.
The reports suggested that the funds were allegedly withheld, diverted, or deposited in interest-yielding accounts instead of being promptly applied to students’ tuition obligations. These allegations quickly generated widespread concern among students, parents, and education stakeholders, raising questions about the integrity of the country’s flagship student loan initiative.
However, following internal verification, NELFUND cleared UNIABUJA of student loan diversion allegations, stating unequivocally that media claims alone do not constitute established findings without supporting evidence and formal audit confirmation, NELFUND clears UNIABUJA student loan diversion allegations.
NELFUND’s Official Position: No Verified Diversion of Funds
NELFUND made it clear that its disbursement framework includes multiple layers of compliance, reconciliation, and verification to prevent misuse of funds.
According to the agency, student loan funds are disbursed through structured institutional channels, with strict documentation and reconciliation procedures in place to ensure accountability and transparency. 
NELFUND cleared UNIABUJA of student loan diversion allegations after reviewing its records and determining that there was no verified evidence showing that funds were misappropriated or diverted.
The agency also clarified that delays in disbursement to individual students can occur due to administrative timelines, including:
• Student application processing
• Institutional reconciliation procedures
• Verification of beneficiary eligibility
• Documentation requirements
NELFUND emphasised that such administrative processes should not be misinterpreted as evidence of diversion or fraud, NELFUND clears UNIABUJA student loan diversion allegations.
UNIABUJA Responds: Allegations Were False and Misleading
UNIABUJA management also strongly denied allegations of wrongdoing, describing the claims as false, misleading, and unsupported by evidence.
According to the university, student loan disbursements are processed based on verified student applications, and funds received from NELFUND are securely held pending completion of administrative requirements, NELFUND clears UNIABUJA student loan diversion allegations.
University authorities confirmed that the ₦256,142,500 received from NELFUND was designated for eligible students and that disbursement occurs only after students complete necessary application procedures. 
UNIABUJA officials further stressed that no funds had been diverted, hoarded, misused, or misapplied, reaffirming their commitment to protecting student interests.
NELFUND cleared UNIABUJA of student loan diversion allegations after reviewing documentation confirming that disbursement procedures were properly followed.
Understanding NELFUND and the Student Loan Programme
NELFUND is a federal government agency established under the Student Loans (Access to Higher Education) Act, 2024, to provide financial assistance to Nigerian students pursuing tertiary education. 
The programme was designed to expand access to higher education by:
• Providing institutional fee loans
• Supporting financially disadvantaged students
• Reducing barriers to education
• Promoting academic opportunity
NELFUND cleared UNIABUJA of student loan diversion allegations in line with its statutory responsibility to ensure transparency and accountability in loan disbursement.
Since its establishment, NELFUND has disbursed billions of naira to tertiary institutions nationwide to support student access to education, NELFUND clears UNIABUJA student loan diversion allegations.
https://ogelenews.ng/nelfund-clears-uniabuja-student-loan-diversion
Controversy Highlights Importance of Accountability
Although NELFUND cleared UNIABUJA of student loan diversion allegations, the incident underscores broader concerns regarding transparency in public financial programmes.
In previous cases, several Nigerian institutions were accused of irregularities involving student loan disbursement, highlighting the need for strong oversight mechanisms,NELFUND clears UNIABUJA student loan diversion allegations.
Education policy experts say the controversy demonstrates the importance of:
• Independent audits
• Transparent financial reporting
• Institutional accountability
• Government oversight
NELFUND’s swift intervention helped clarify facts and prevent misinformation.
Reassurance for Students and Stakeholders
NELFUND reassured students and stakeholders that its loan disbursement process remains secure and transparent.
The agency reiterated its commitment to protecting students’ financial interests and ensuring that all disbursements comply with legal and regulatory requirements.
NELFUND cleared UNIABUJA of student loan diversion allegations to restore confidence in the national student loan programme.
Officials emphasised that the agency remains committed to ensuring fair and transparent access to educational funding, NELFUND clears UNIABUJA student loan diversion allegations.
Broader Implications for Nigeria’s Education Sector
The student loan programme represents a major reform in Nigeria’s education financing system.
NELFUND cleared UNIABUJA of student loan diversion allegations at a critical time when thousands of students depend on the programme to access higher education.
Education experts say the programme could significantly improve access to tertiary education and reduce financial barriers for students.
However, maintaining transparency and public trust remains essential, NELFUND clears UNIABUJA student loan diversion allegations.
Conclusion: Institutional Integrity Affirmed
NELFUND’s decision to clear UNIABUJA of student loan diversion allegations represents a significant development in Nigeria’s education financing landscape.
The agency’s findings affirm that there is no verified evidence of wrongdoing by the University of Abuja.
NELFUND cleared UNIABUJA of student loan diversion allegations following proper verification, reinforcing its commitment to transparency, accountability, and student protection.
The case highlights both the importance of oversight and the need for responsible reporting in safeguarding public confidence in national education programmes.
https://punchng.com/nelfund-clears-uniabuja-of-student-loan-diversion-allegations
NELFUND clears UNIABUJA student loan diversion allegations.
