President Bola Ahmed Tinubu has directed that all cleared and unencumbered funds recovered by the Economic and Financial Crimes Commission (EFCC) be channelled into the Nigerian Education Loan Fund (NELFUND) to strengthen the sustainability of the student loan scheme.
The President also directed that unclaimed dividends and funds in dormant accounts be considered for transfer to NELFUND, subject to the relevant laws governing the funds.
Minister of Education, Dr. Maruf Tunji Alausa, disclosed this on Monday, saying the directive would provide a new funding stream for NELFUND and expand opportunities for Nigerian students seeking tertiary education.
According to him, only recovered funds that are legally cleared and free from litigation or other encumbrances would be considered for transfer.
Alausa said President Tinubu had directed the Ministers of Education and Finance, alongside the Attorney-General of the Federation, to work out the modalities for implementing the new funding arrangement.
He explained that the Attorney-General would review the laws establishing the unclaimed dividend trust fund and dormant account trust fund to determine how the resources could legally be transferred to NELFUND.
“Together with the directives by Mr. President on the seized EFCC funds, which will now be directed to fund NELFUND, Mr. President also directed that all unclaimed dividends from the capital market trust funds, as well as funds in the dormant account trust fund, should also be moved to support the financial sustainability of NELFUND,” Alausa said.
The minister added that any necessary amendments to existing legislation would be considered to ensure full compliance with the law.
Alausa described the development as a major boost for Nigerian students, saying the administration was determined to ensure that financial constraints did not prevent qualified young Nigerians from accessing quality tertiary education.
He said more than 1.2 million students in tertiary institutions were currently benefiting from NELFUND, while, as of August 8, the Fund had disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries across the country.
The minister said the new funding arrangement would complement NELFUND’s existing sources of revenue, including the 15 per cent allocation from the development levy, and place the Fund on a stronger financial footing.
“Basically, NELFUND, beyond the 15 per cent allocation from the development levy, is now positioned to be financially buoyant into the near future, into the distant future and sustainably to eternity,” he said.
NELFUND was established in 2024 following President Tinubu’s signing of the Student Loans Access to Higher Education Act into law, providing interest-free loans to eligible students in tertiary institutions.
Alausa said the initiative represented more than an intervention in student financing, as it would help transform recovered public resources into educational opportunities and contribute to developing the skilled workforce required to drive Nigeria’s economic growth.
He expressed appreciation to President Tinubu for his continued support for the education sector, saying the administration was committed to improving access to quality education across basic, secondary and tertiary levels.
The minister said the Federal Ministry of Education would continue to work with NELFUND and other relevant government institutions to ensure effective implementation of the new funding arrangements within the provisions of the law.
