NELFUND Seeks Stronger National Assembly Support Ahead of 2026 Development Levy Implementation
The Nigerian Education Loan Fund (NELFUND) has called for stronger collaboration with the National Assembly to ensure the full realisation and effective deployment of its 25% allocation from the forthcoming Development Levy, set to take effect on January 1, 2026.
In a statement personally signed by the Managing Director and Chief Executive of NELFUND, Akintunde Sawyerr, the Fund emphasized that timely appropriation, efficient fund releases, and broad-based sensitisation are crucial to unlocking the full potential of the levy in expanding access to affordable education financing for Nigerian students.
The new framework, introduced under the recently approved National Taxation Act (NTA 2025), mandates a 4% Development Levy on the assessable profits of taxable companies—excluding small and non-resident companies, as well as profits derived from hydrocarbon tax. Under this structure, NELFUND is allocated 25% of the levy proceeds, representing a transformative opportunity to scale up education loan services nationwide.
“While this new funding stream provides NELFUND with a stronger base to fulfil its mandate, effective implementation depends on two critical factors: timely appropriation by the National Assembly and efficient releases by the Ministry of Finance and the Office of the Accountant-General of the Federation,” Sawyerr said.
He also stressed the importance of nationwide sensitisation to ensure students, families, and educational institutions are fully aware of and able to access the opportunities provided under the new financing model.
Outlining its forward-looking plans, NELFUND has committed to:
Expanding nationwide awareness campaigns targeting students, families, and institutions on how to access loans.
Investing in digital platforms to ensure transparent, efficient, and user-friendly loan application and disbursement processes.
Strengthening partnerships with tertiary institutions to streamline loan administration and repayment mechanisms.
Deepening outreach efforts to underserved regions and vulnerable groups, ensuring no eligible student is excluded.
Speaking on the need for legislative and inter-agency collaboration, Sawyerr stated:“The 25% allocation from the Development Levy marks a pivotal step towards transforming Nigeria’s education financing landscape. It gives us the capacity to reach more students, strengthen our systems, and deliver on our mandate more effectively.
However, for this opportunity to translate into real impact, we need strong collaboration with the National Assembly in the appropriation process and in nationwide sensitisation, while also working with the Ministry of Finance and the Office of the Accountant-General to ensure efficient releases.
Together, we can build a stronger, more inclusive system where no Nigerian student is denied the chance to learn because of financial constraints.”
NELFUND reaffirmed its unwavering commitment to accountability, transparency, and responsible fund management, assuring stakeholders that every naira allocated will go directly toward expanding access to education and strengthening Nigeria’s human capital development.
