Tinubu Moves Recovered Funds to NELFUND, Opens New Hope for Students By Beauty Akporidoh Aroh
President Bola Ahmed Tinubu has ordered a major expansion of the funding base of the Nigerian Education Loan Fund (NELFUND), directing that all legally cleared and unencumbered funds recovered by the Economic and Financial Crimes Commission (EFCC) be channelled into the student loan scheme.
The President has also directed that unclaimed dividends and funds held in dormant account trust funds be considered for transfer to NELFUND, subject to existing laws and any necessary legislative amendments.
The move, announced by the Minister of Education, Dr. Maruf Tunji Alausa, on Monday, could significantly reshape the financing of tertiary education in Nigeria as the number of students accessing the Federal Government’s interest-free loan programme continues to rise.
Alausa said the directive followed President Tinubu’s determination to make NELFUND financially sustainable and capable of meeting its expanding obligations over the long term.
According to the Minister, the President had directed that EFCC-recovered funds that are free from litigation and other legal encumbrances should be redirected to NELFUND rather than left idle.
“Mr. President directed that all seized funds, unencumbered funds free of litigation, by the Economic and Financial Crimes Commission should be diverted to NELFUND to support the growing obligations of the Fund,” Alausa said.
He stressed, however, that the directive would not override legal requirements, noting that only funds that have been properly cleared would qualify for transfer.
The President, he added, had extended the directive to unclaimed dividends from capital market trust funds and monies in dormant account trust funds.
Alausa said the Attorney-General of the Federation would work with the Ministers of Finance and Education and other relevant institutions to develop the legal and operational framework for implementing the directive.
“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.
Where necessary, he added, amendments would be proposed to the relevant laws to facilitate the transfer.
The Minister described the development as a major opportunity for Nigerian students, saying the administration was determined to ensure that financial hardship would no longer prevent qualified young Nigerians from accessing tertiary education.
“This is a time that is great for Nigerian students,” Alausa said, stressing that President Tinubu “believes fervently and benevolently in education.”
The latest directive comes as NELFUND assumes an increasingly central role in the Federal Government’s education financing strategy.
Alausa disclosed that more than 1.2 million Nigerian tertiary institution students are currently benefiting from the scheme, while NELFUND had, as of August 8, disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries across the country.
With the new funding sources, the Minister said NELFUND would no longer depend solely on its existing financing arrangements.
He noted that the Fund already receives a 15 per cent allocation from the development levy but said the additional sources being considered would strengthen its capacity to operate sustainably.
“Beyond the 15 per cent allocation from the development levy, NELFUND is now positioned to be financially buoyant into the near future, into the distant future and sustainably to eternity,” Alausa said.
The Minister framed the policy as more than a funding intervention, arguing that it would transform recovered public resources into opportunities for young Nigerians.
Rather than allowing funds recovered from past economic crimes or trapped in dormant and unclaimed accounts to remain underutilised, the administration intends to deploy them towards educating the next generation of Nigerians, he said.
Alausa also linked the initiative to the broader education reforms of the Tinubu administration, saying investments were being made across tertiary, basic and senior secondary education.
“We’ve never had it so good in the education sector,” he said, while expressing appreciation to the President for what he described as sustained political and financial support for the sector.
NELFUND was established in 2024 following President Tinubu’s signing of the Student Loans Access to Higher Education Act into law, creating an interest-free student loan framework for eligible Nigerians in tertiary institutions.
The Federal Ministry of Education said it would continue working with NELFUND, the Attorney-General’s office, Ministry of Finance and other relevant agencies to ensure that the proposed funding arrangements comply fully with the law.
For millions of Nigerian families struggling with the rising cost of tertiary education, the policy could mark a significant shift in how education is financed — turning recovered resources into a direct investment in the country’s human capital.
Alausa reaffirmed the Ministry’s commitment to expanding access to quality education and ensuring that lack of financial resources does not prevent qualified Nigerian students from pursuing higher education.
