President Bola Ahmed Tinubu has directed that all funds recovered by the Economic and Financial Crimes Commission (EFCC) that have been legally cleared, unencumbered and free from litigation be channelled to the Nigerian Education Loan Fund (NELFUND) to strengthen its long term financial sustainability.
The President has also directed that funds from unclaimed dividends and dormant accounts be considered for transfer to NELFUND, subject to the laws governing the respective funds.
The Minister of Education, Dr. Maruf Tunji Alausa, disclosed this on Monday, saying the directive would provide a stronger and more sustainable financial base for NELFUND as the student loan scheme expands.
“Mr. President directed that all seized funds, unencumbered funds free of litigation, by the Economic and Financial Crimes Commission should be diverted to NELFUND to support the growing obligations of the Fund,” Alausa said.
He stressed that only funds that have been legally cleared and are free from litigation or other encumbrances would qualify for transfer.
According to the Minister, the President also directed that unclaimed dividends from capital market trust funds and monies in the dormant account trust fund be considered to support NELFUND’s financial sustainability.
Alausa said the Attorney General of the Federation would work with the Ministers of Finance and Education and other relevant institutions to develop the modalities for implementing the directives.
He explained that the Attorney-General would review the laws establishing the unclaimed dividend and dormant account trust funds to determine how the funds could be transferred in full compliance with existing legislation.
“If changes would have to be made to the Act, whatever, the Attorney-General is looking into that,” he said.
The Minister described the development as a major boost for Nigerian students, particularly as the Federal Government continues to expand access to tertiary education.
He said more than 1.2 million students in tertiary institutions are currently benefiting from NELFUND, while the Fund had, as of August 8, disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries nationwide.
NELFUND was established in 2024 after President Tinubu signed the Student Loans Access to Higher Education Act into law, providing interest free loans to eligible students in tertiary institutions.
Alausa said the new funding arrangement would complement NELFUND’s existing financing sources, including the 15 per cent allocation from the development levy, and place the Fund on a more sustainable financial footing.
“But to summarise, 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.
The Minister said the initiative would transform recovered public resources into educational opportunities for Nigerian students and contribute to building the skilled workforce required for national development.
He also reaffirmed the Ministry of Education’s commitment to working with NELFUND and other relevant government institutions to ensure effective and lawful implementation of the new funding arrangements.
Alausa thanked President Tinubu for his political and financial support for the administration’s education agenda, saying the government remained committed to ensuring that financial constraints do not prevent qualified Nigerian students from accessing quality tertiary education.
