UniAbuja NELFUND loan controversy emerges as students claim delayed disbursement of multibillion-naira funds meant for school fees
Professor Hakeem Fawehinmi, Vice-Chancellor of the University of Abuja, and Professor Simon Malang Kawe, Dean of Students’ Affairs, alongside other senior officials, are under scrutiny following allegations of mismanagement and diversion of multibillion-naira funds from the Nigerian Education Loan Fund (NELFUND) intended for indigent students, Peoples Gazette can report.
Also read: UniAbuja promotes 104 academic staff to professorial rank
The investigation revealed that hundreds of NELFUND-certified students were forced to pay school fees from personal funds due to the withholding of loans already disbursed to the university.
Sources claim that university officials held the funds in interest-yielding accounts, delaying disbursement to students.
The controversy centres on N256,142,500 disbursed by NELFUND on January 29, 2026, for 2,245 students in the 2025/2026 academic session.
Despite the funds being received, an internal memo from February 7 instructed students to cover fees personally and apply for reimbursement later.
“This directive caused panic among students, some of whom lack alternative means to pay tuition,” said a student who requested anonymity. Protests were reportedly planned in response to the delays.
In reaction, the university issued a follow-up memo on February 8 allowing affected students to sit exams pending reimbursement.
The memo stated that delays in fee payments were due to the timing of NELFUND disbursement.
A senior NELFUND official noted, “Schools are responsible for verifying student information and managing the disbursed funds. Any discrepancies are the institution’s responsibility, not NELFUND’s.”
Professor Fawehinmi dismissed claims of fund diversion, stating, “It is not correct. No management member is siphoning NELFUND money.
All balances are refunded once students apply through the proper channels.”
Despite assurances, several students reported persistent delays in reimbursements, with some having left the university or country before receiving refunds.
The university insists that delays result from students not following the prescribed application process.
The matter has attracted federal attention, with EFCC reportedly investigating.
Also read: We’ll not take this, UniAbuja students reject name change
NELFUND officials confirmed that UniAbuja has not reported or refunded excess disbursements to the fund, unlike some other institutions.
Mariam Balogun is a contributor to Freelanews.com, covering news, business, and public affairs.
