Jane Salihu
President Bola Ahmed Tinubu has opened a new funding window for the Nigerian Education Loan Fund (NELFUND), directing that legally cleared and unencumbered funds recovered by the Economic and Financial Crimes Commission (EFCC) be channelled into the Fund to strengthen its financial sustainability and expand access to tertiary education.
A statement signed by Ikharo Attah, Special Adviser (Media and Communications) to the Minister of Education, Dr. Maruf Tunji Alausa, on Monday, said the President had 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 directive is coming as NELFUND’s obligations continue to grow, with the Minister disclosing that more than 1.2 million students in tertiary institutions are currently benefiting from the student loan scheme.
Alausa said the new funding arrangement would help make NELFUND financially buoyant and sustainable beyond its existing sources of funding, while ensuring that resources recovered on behalf of Nigerians are put to productive use.
According to him, only funds recovered by the EFCC that have been legally cleared and are free from litigation or other encumbrances will qualify for transfer.
“As you heard me at the last press briefing following the last Federal Executive Council meeting, Mr. President mentioned that we need to make NELFUND financially buoyant and sustainable into the future,” Alausa said.
He explained that the President had directed that seized EFCC funds that were unencumbered and free from litigation should be diverted to NELFUND to support the growing obligations of the Fund.
The Minister said the President had also directed that unclaimed dividends from capital market trust funds and funds in dormant account trust funds should be considered as additional sources of financing for NELFUND.
However, he stressed that the proposed transfers would be subject to the relevant legal frameworks.
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 presidential directive.
He added that the Attorney-General would review the laws establishing the Unclaimed Dividend Trust Fund and Dormant Account Trust Fund to determine how the funds could legally be transferred to NELFUND.
“More importantly, the Attorney-General will review the Act setting up the unclaimed dividend trust fund as well as the dormant can account trust fund to see how we can be legally compliant in moving those funds,” he said.
The Minister noted that any necessary amendments to the relevant laws would also be considered to ensure full compliance with the law.
He described the development as a major opportunity for Nigerian students, saying the administration was committed to creating greater opportunities for young Nigerians through sustained investment in education.
“This is a time that is great for Nigerian students. You have a President, President Bola Ahmed Tinubu, that believes fervently and benevolently in education and continues to push day and night to ensure that every single Nigerian youth gets the best opportunity to be useful to themselves, useful to their community, to the country and the global world at large,” Alausa said.
The Minister said the new funding arrangement would complement NELFUND’s existing financing, including the 15 per cent allocation from the development levy, and provide a stronger foundation for meeting the Fund’s growing obligations.
He said the arrangement would position NELFUND to remain financially sustainable in the near and long term.
As of August 8, NELFUND had disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries nationwide.
Alausa also said the Federal Government’s investments were yielding improvements across the education sector, including in the quality of education, services provided to students and the welfare of academic and non-academic staff in tertiary institutions.
He added that interventions were being extended to basic and senior secondary education as part of the administration’s broader efforts to strengthen Nigeria’s education system.
“We’ve never had it so good in the education sector,” the Minister said.
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 significance of the new funding direction went beyond immediate financial support, as it would create a mechanism for transforming resources recovered from the past into educational opportunities that could shape the future of Nigerian youths.
He maintained that sustained investment in education would help build the skilled and productive workforce required to drive national development and support Nigeria’s long-term economic ambitions.
The Federal Ministry of Education said it would continue to work with NELFUND and other relevant government institutions to ensure effective implementation of the new funding arrangements while maintaining full compliance with the law.
Alausa reiterated the Ministry’s commitment to expanding access to quality education and ensuring that financial constraints do not prevent qualified Nigerian students from pursuing tertiary education.
GIPHY App Key not set. Please check settings