Key Takeaways
- President Tinubu has directed that legally cleared funds recovered by the EFCC be channeled into the Nigerian Education Loan Fund (NELFUND).
- Unclaimed dividends from capital market trust funds and money held in the dormant account trust fund may also be moved to support the student loan scheme.
- Minister of Education Dr. Maruf Tunji Alausa says the initiative will make NELFUND financially sustainable amid growing obligations.
- The Attorney-General of the Federation will develop a legal framework for the transfer and review relevant trust fund acts for compliance.
New Revenue Path for Student Loans
The Federal Government is creating additional funding streams for NELFUND, with President Bola Ahmed Tinubu directing that legally cleared EFCC-recovered funds be transferred to the student loan scheme.
Speaking on Monday, Minister of Education, Dr Maruf Tunji Alausa, disclosed that the President also instructed that unclaimed dividends from capital market trust funds and funds held in the dormant account trust fund be considered for transfer to NELFUND, subject to existing laws.
Alausa explained that the measures are necessary because NELFUND's obligations keep expanding. He recalled the President's position at the last Federal Executive Council meeting, saying: '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.'
Only EFCC-recovered funds free from litigation and other legal encumbrances would be eligible, the minister stressed. This safeguard is intended to prevent legal disputes from complicating the flow of money into the education loan scheme.
Expanded Funding Base
Beyond recovered funds, the President directed that all unclaimed dividends from the capital market trust funds, as well as funds in the dormant account trust fund, should likewise support NELFUND.
These new streams would complement the existing 15 per cent allocation from the development levy. Alausa said the additional resources position NELFUND to remain financially buoyant in the near and distant future, and 'sustainably to eternity.'
Legal Framework and Implementation
The Attorney-General of the Federation will work with the Ministers of Finance and Education, along with relevant agencies, to establish the legal framework for the directive. Alausa noted that the Attorney-General will review the Act establishing the unclaimed dividend trust fund and the dormant account trust fund to ensure the movement of funds is legally compliant.
If the existing laws require changes, amendments will be considered. This careful approach underlines the need to balance education financing with legal integrity.
Scale of NELFUND's Impact
NELFUND has grown into a significant intervention programme, with more than 12 million students currently benefiting. As of August 8, over ₦322 billion had been disbursed for institutional fees and upkeep allowances, according to the minister.
By tapping into recovered assets and long-idle funds, the government is seeking to sustain a programme that many students now rely on. The latest directive also signals a broader effort to maximize the use of public resources without compromising legal processes.
Why This Matters
Redirecting verified EFCC recoveries and dormant funds into NELFUND could expand higher-education access while making the loan scheme less dependent on one levy. For millions of Nigerian students, financial sustainability translates into uninterrupted funding and greater certainty about their academic future.