The University of Abuja has firmly rejected allegations that its Vice-Chancellor, Prof Hakeem Fawehinmi, and other senior officials diverted multibillion-naira Nigerian Education Loan Fund grants meant for indigent students.

The allegations, published by an online news platform, claimed that the vice-chancellor, the Dean of Students’ Affairs, Prof Simon Kawe, and unnamed officials manipulated the Nigerian Education Loan Fund, NELFUND, scheme. The report alleged that institutional fee loans were lodged in interest-bearing accounts and that hundreds of eligible students were denied access to the funds approved for them.

In a detailed rebuttal signed by the Acting Director of Information and University Relations, Habib Yakoob, the university described the publication as false, misleading and mischievous, insisting that no evidence had been produced to substantiate the claims of diversion.

The university confirmed that it received N256,142,500 from NELFUND for 2,245 approved beneficiaries as institutional fee loans. However, it stressed that the loan scheme is strictly application-driven, meaning that funds are only disbursed after individual students complete the required process.

According to the statement, some students, anxious not to lose their academic session, had paid their fees before the NELFUND money hit the university’s account. These students were later advised to apply for reimbursement, and the institution said those applications are being processed in line with laid-down procedures.

The management dismissed suggestions that the funds were hoarded or used to generate interest. It maintained that no student had been shortchanged and that all monies not yet claimed by beneficiaries remain in designated accounts, awaiting proper applications before release.

The university also defended Prof Fawehinmi’s leadership, noting that since assuming office as vice-chancellor he has adopted a student- and staff-centred approach and has handled all NELFUND-related transactions with transparency and strict adherence to the fund’s regulations.

The statement urged students, parents and the wider public to disregard the online report, describing it as an attempt to cause unnecessary panic and tarnish the image of the institution and its leadership.