President Bola Tinubu has directed that legally cleared recoveries by the Economic and Financial Crimes Commission, EFCC, along with unclaimed dividends and dormant funds, be explored as additional financing sources for the Nigerian Education Loan Fund, NELFUND.
The proposed funding sources will be subject to applicable laws, with only funds free of litigation and other encumbrances eligible for transfer.
A statement by the Special Adviser to the Minister of Education on Media and Communications, Mr. Ikharo Attah, on Monday, said the initiative is expected to provide NELFUND with additional resources to meet its growing obligations as more Nigerian students access the interest-free loan scheme.
According to the statement, the move is part of the Federal Government’s broader effort to build a sustainable funding framework for NELFUND and expand access to tertiary education.
Speaking on the initiative, the Minister of Education, Dr. Tunji Alausa, said Tinubu had earlier directed that all seized funds recovered by the EFCC, once cleared of litigation or other encumbrances, be channelled to NELFUND.
“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 directive also extends to unclaimed dividends and funds held in dormant account trust funds, subject to relevant legal provisions.
“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,” he said.
According to the Minister, the Attorney-General of the Federation, working with the Ministers of Finance and Education and other relevant institutions, will develop modalities for implementing the directive.
“During that meeting as well, Mr. President directed the Minister of Finance, myself and the Attorney-General of the Federation to work on the modalities to operationalising this.
“More importantly, the Attorney-General will review the Act setting up the unclaimed dividend trust fund as well as the dormant account trust fund to see how we can be legally compliant in moving those funds,” he said.
Alausa added that amendments to existing legislation would be considered where necessary to provide an appropriate legal framework for the fund transfers.
He said the initiative would give NELFUND a stronger financial base as government efforts to widen access to tertiary education continue, stressing that the administration is committed to ensuring financial constraints do not stand in the way of qualified Nigerian students pursuing higher 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, useful to the country and the global world at large,” Alausa said.
The Minister commended President Tinubu for the political support and funding extended to the administration’s education agenda, noting that government interventions were already yielding improvements in the quality of education, student services, and staff welfare across tertiary institutions.
He added that similar interventions were being extended to basic and senior secondary education as part of a broader push to strengthen the education system nationwide.
While describing the new funding arrangement as complementary to NELFUND’s existing revenue sources, including the 15 per cent allocation from the education development levy.
Alausa said: “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.”
The Minister disclosed that more than 1.2 million students in Nigerian tertiary institutions are currently benefiting from NELFUND. As of August 8, 2026, the Fund had disbursed more than N322 billion in institutional fees and upkeep allowances to beneficiaries nationwide.
NELFUND was established in 2024 following President Tinubu’s assent to the Student Loans Access to Higher Education Act, which provides interest-free loans to eligible students in tertiary institutions.
The Ministry said it would continue working with NELFUND and other relevant government institutions to ensure the effective and lawful implementation of the new funding arrangements, and reaffirmed its commitment to expanding access to quality tertiary education and strengthening the loan scheme’s financial sustainability.
