By joshua Edo Govt. Queries AAU VC Over NELFUND Implementation
By Ikhili Ebalu, Benin city
The Edo State Government has commenced an official inquiry into the implementation of the Nigerian Education Loan Fund (NELFUND) at Ambrose Alli University (AAU), Ekpoma, amid allegations surrounding the administration and disbursement of students’ loan funds.
In a letter MOE/HE/NF/VOL I/ 1
dated June 24, 2026, titled “Implementation of the Nigerian Education Loan Fund (NELFUND)”, the Ministry of Education, through the Director of Higher Education for the Permanent Secretary, requested detailed explanations from the university’s Vice-Chancellor regarding the management of the scheme.
The Ministry specifically sought to know why student enrolment under the NELFUND programme had declined compared to previous application cycles. It also requested the university to explain the challenges responsible for the decline and outline measures taken by the management to improve students’ participation in the programme.
The government directed that the university’s response should reach the Ministry on or before July 10, 2026.
The official inquiry comes amid growing concerns over the alleged non-disbursement of NELFUND payments to eligible students.
According to reports, some beneficiaries for the 2024/2025 academic session, particularly students who had paid their tuition fees before receiving approval for the education loan, are yet to receive refunds allegedly due to them. Similar concerns have also been raised regarding beneficiaries for the 2025/2026 academic session, with claims that funds already released for disbursement have not reached the intended recipients.
Aljazirah Nigeria gathered that, there are also unverified allegations that the undistributed funds may have been lodged in fixed deposit accounts pending disbursement. However, no official evidence has been made public to substantiate these claims, and the university management has not publicly responded to the allegations.
Meanwhile, sources familiar with developments within the institution claim that an internal memorandum was prepared seeking the approval of the Governing Council for the expenditure of about ₦11 million from the NELFUND allocation. The purpose of the proposed expenditure, according to the sources, was to enable the management effect a refund to student beneficiaries for the year 2024/2025 who had fully paid their tuition before the NELFund’s approval. The authenticity and status of the memorandum could not be independently verified at the time of filing this report.
As of press time, it was unclear whether the Vice-Chancellor had formally responded to the Ministry’s query or issued any public statement addressing the concerns raised.
The unfolding developments are expected to attract close scrutiny from stakeholders, including students, parents, education advocates and anti-corruption agencies, given the importance of the NELFUND scheme in expanding access to higher education.
Efforts to obtain an official reaction from the university management were unsuccessful as of the time this report was filed.