Edo Govt Queries AAU VC Over NELFUND Implementation as Students Fail to Access ₦242bn Loan Scheme

Published on 1 July 2026 at 06:46

Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.

The Edo State Government has officially queried the Vice Chancellor of Ambrose Alli University (AAU), Ekpoma, Professor Eunice Omonzejie, over the alleged failure of students to access the Nigerian Education Loan Fund (NELFUND), a federal government scheme that has disbursed over ₦242 billion to date.

The query, dated June 24, 2026, was issued by the Edo State Ministry of Education and signed by Omionawele P.O. on behalf of the Permanent Secretary, according to a copy obtained by Daily Post. The letter, titled “Implementation of the Nigerian Education Loan Fund (NELFUND),” expressed the ministry's displeasure that no student from the university had benefited from the NELFUND programme during the 2025/2026 academic session, despite the massive federal disbursement.

The ministry's letter stated: “I am directed to refer to the above subject and to express the ministry's displeasure over the implementation of NELFUND in your university. For the purpose of clarity, as of the 2025/2026 academic session, available records show that no student from your university has benefited from the over Two Hundred and Forty-Two Billion (₦242,000,000,000.00) Naira disbursed so far by the Federal Government of Nigeria for the NELFUND programme.”

The ministry demanded to know the challenges preventing students from accessing the loans and the actions taken by the university management to resolve the issues. The Vice Chancellor was given a deadline of July 10, 2026, to submit a detailed response, which would enable the ministry to brief Governor Monday Okpebholo on the matter.

The query 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 loan approval—are yet to receive refunds allegedly due to them. Similar concerns have been raised for the 2025/2026 session, with claims that funds already released have not reached the intended recipients.

Unverified allegations have also surfaced that undistributed funds may have been lodged in fixed deposit accounts pending disbursement, but no official evidence has been made public to substantiate these claims. Sources familiar with developments within the institution also claimed that an internal memorandum was prepared seeking Governing Council approval for the expenditure of about ₦11 million from the NELFUND allocation to effect refunds to student beneficiaries for the 2024/2025 academic year who had fully paid their tuition before the loan scheme's approval. The authenticity and status of the memorandum could not be independently verified.

The Edo State Government had, in March 2025, announced a partnership with the Nigerian Education Loan Fund to make tertiary education accessible and affordable for students in state-owned institutions. The then Commissioner for Education, Dr. Pally Iyamu, urged students across state-owned institutions to take advantage of the opportunity, noting that the partnership would guarantee Edo students access to university and tertiary education without the immediate burden of school fees, while also providing a monthly stipend to support their expenses.

As part of efforts to raise awareness, the government organised a two-day sensitisation programme on March 11 and 12 across Edo's three senatorial districts, with sessions held at Edo State Polytechnic, Usen (Edo South); Ambrose Alli University, Ekpoma (Edo Central); and Edo University, Iyamho (Edo North).

As of the time of filing this report, the Vice Chancellor had not formally responded to the ministry's query or issued any public statement addressing the concerns raised. Efforts to obtain an official reaction from the university management were unsuccessful, according to multiple reports. 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 in Nigeria.

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