AAU denies withholding NELFUND student loans

By Jimoh Babatunde
The management of Ambrose Alli University (AAU), Ekpoma, Edo State, has denied allegations that it withheld funds disbursed under the Federal Government’s Nigerian Education Loan Fund (NELFUND) scheme.

The denial follows reports by an online news platform alleging that some graduates of the institution accused the university of failing to release student loan funds approved in their names.

In a statement made available to journalists and signed by the Principal Assistant Registrar and Head of Information, Protocol and Public Relations, Otunba Mike Ade Aladenika, the university insisted that there was “no scandal of any kind” in its handling of the student loan programme.

“The management of Ambrose Alli University, Ekpoma, wishes to categorically state that there is no scandal of any kind in our dealings with NELFUND and the benefitting students of our university,” the statement said.

The university explained that it first participated in the NELFUND loan programme during the 2024/2025 academic session, noting that the timing of the loan application process created complications for some students who were completing the previous academic year.

According to the management, when the loan application portal opened, the university was still concluding the 2023/2024 academic session.

“As at the time the application portal opened for the 2024/2025 loan scheme, our university was concluding the 2023/2024 academic session. Some final-year students applied for the loan, but by the time of disbursement, they had already graduated,” the statement explained.

The institution said the development created uncertainty regarding the eligibility of the affected applicants, prompting the university to seek clarification from the management of the Nigerian Education Loan Fund.

“Due to this conflict, we sought clarification from NELFUND, and they indicated that the affected individuals were not eligible since they were no longer students at the time of disbursement,” the statement added.

AAU further maintained that it had complied with all the guidelines and procedures provided by the loan fund and assured that discussions with the agency were ongoing to resolve the issue.

“We complied with NELFUND’s guidelines. Engagement on this matter remains ongoing, and affected graduates will be kept informed of updates through established channels,” the university stated.

The clarification comes amid allegations by 13 graduates of the institution who claimed that the university withheld loan funds disbursed in their names under the NELFUND scheme.

According to the affected graduates, they applied for the loan during their final year but were unable to access the funds before their final examinations, forcing them to rely on personal savings, family assistance and private loans to pay their tuition fees.

They alleged that months after graduating, they discovered that the loan had already been disbursed to the university, despite the fact that they had independently settled their school fees.

The graduates also expressed concern that the loan still appears under their names on the NELFUND portal, raising fears that they may be required to repay funds they never personally received.

They have therefore called on the university to provide a formal explanation, refund the loan amounts, and clarify how repayment obligations would be handled if the funds are not returned.

The controversy has sparked renewed debate about the implementation of the Federal Government’s student loan scheme and the need for clear administrative processes to prevent disputes between institutions and beneficiaries.

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