By Adeola Kunle
President Bola Ahmed Tinubu has approved a new funding direction for the Nigerian Education Loan Fund (NELFUND), directing that all funds recovered by the Economic and Financial Crimes Commission (EFCC) that have been legally cleared and are free from litigation be channelled to the Fund.
The President has also directed that unclaimed dividends and funds held in dormant accounts be considered for transfer to NELFUND, subject to the laws governing such funds.
Minister of Education, Dr. Maruf Tunji Alausa, said the directives would strengthen NELFUND's financial position and support the sustainability of the student loan programme as more Nigerian students gain access to tertiary education.
Speaking on Monday morning, August 24, 2026, Dr. Alausa explained that the President's decision was aimed at ensuring that resources recovered on behalf of Nigerians are put to productive use, particularly in creating educational opportunities for young people.
The Minister recalled that President Tinubu had, during the last Federal Executive Council meeting, emphasised the need to make NELFUND financially strong and sustainable in the long term.
According to him, the President directed that seized EFCC funds that are unencumbered and free from litigation should be redirected to NELFUND to help the Fund meet its increasing obligations.
Dr. Alausa stressed that the directive does not apply indiscriminately to all recovered funds. Only funds that have been legally cleared and are not subject to litigation or other legal restrictions will be considered.
He further disclosed that the President had extended the directive to unclaimed dividends from capital market trust funds and money held in the dormant account trust fund.
The Minister said the implementation would be carried out in accordance with the relevant laws.
He explained that the Attorney-General of the Federation would work with the Ministers of Finance and Education, as well as other relevant government institutions, to develop the appropriate framework for transferring the funds.
Dr. Alausa 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 applied to NELFUND.
Where amendments to existing legislation are required, he said the necessary steps would be considered to ensure that the process fully complies with the law.
The Minister described the development as a major opportunity for Nigerian students, particularly as the Federal Government continues to expand access to education and provide young people with opportunities to contribute to national development.
He commended President Tinubu for his strong commitment to education, saying the President's administration was working to ensure that Nigerian youths receive quality education that would enable them to become productive members of their communities, Nigeria and the global community.
Dr. Alausa also expressed appreciation to the President for the political backing and financial support being provided to implement the administration's education agenda.
He said the government's objective is to ensure that every Nigerian child and student has access to quality education that compares favourably with standards anywhere in the world.
According to the Minister, government investments are already producing improvements in different areas of the education sector, including the quality of education, services available to students and the welfare of academic and non-academic staff in tertiary institutions.
He added that similar interventions were being extended to basic and senior secondary education as part of the Federal Government's wider effort to strengthen the country's education system.
Dr. Alausa described the current period as a significant one for Nigeria's education sector and thanked President Tinubu for his continued support and commitment to repositioning education.
On NELFUND's financial future, the Minister said the new funding sources would complement the Fund's existing financing arrangements and provide a stronger foundation for meeting its growing responsibilities.
He explained that beyond the 15 per cent allocation from the development levy, the additional funding streams would place NELFUND in a stronger position to remain financially sustainable in the near and long term.
More than 1.2 million Nigerian students in tertiary institutions are currently benefiting from NELFUND, according to the Minister.
As of August 8, NELFUND had disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries across the country.
NELFUND was established in 2024 following President Tinubu's signing of the Student Loans Access to Higher Education Act into law. The Fund provides interest-free loans to eligible students in Nigerian tertiary institutions.
Dr. Alausa noted that the importance of the new funding arrangement goes beyond providing immediate financial assistance to students. He said it creates an avenue for resources recovered from the past to be converted into educational opportunities capable of shaping Nigeria's future.
He maintained that sustained investment in education would help develop the skilled and productive workforce needed to drive national development and support Nigeria's long-term economic aspirations.
The Federal Ministry of Education will continue to work with NELFUND and other relevant government institutions to ensure the effective implementation of the new funding arrangements.
The Ministry also reiterated that the process would remain within the framework of the law and be directed towards benefiting its intended beneficiaries.
Dr. Alausa reaffirmed the Ministry's commitment to expanding access to quality education and ensuring that financial difficulties do not prevent qualified Nigerian students from pursuing tertiary education.
Adeola Kunle
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