The government has joined dozens of Nigerian students in a lawsuit against Alabama State University, which dates back to 2016.
It also accused the university, which has been traditionally for black students, of charging them for accommodation they did not use and classes they did not take.
The university has said it did nothing wrong, telling local media it “adhered to and complied with every instruction and direction given to the university by the Nigerian government regarding that agreement”.
It admitted the Nigerian government was owed $202,000 after everything was paid, but said it had deposited it in an account.
But Anthony Ifediba, who is representing the students, said they believe the university might have withheld as much as $800,000.
He told the Montgomery Advertiser the Nigerian government had paid Alabama State about $5 million, which was meant to cover tuition and living costs for all students.
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