President Bola Tinubu has directed that liquid funds recovered by the Economic and Financial Crimes Commission be transferred to the Nigerian Education Loan Fund to strengthen the financing of the Federal Government’s student loan scheme.
The Minister of Education, Tunji Alausa, disclosed this on Wednesday while briefing State House correspondents after the Federal Executive Council meeting.
Alausa said the council also approved the transfer of unclaimed dividends in the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.
According to the minister, the move is aimed at expanding the reach of the student loan scheme and ensuring that the education financing agency has sufficient resources to meet its growing obligations.
“The President, in his benevolence, has now directed that all funds recovered by the Economic and Financial Crimes Commission be diverted to NELFUND to continue to support its funding,” Alausa said.
He explained that the directive was specifically limited to liquid funds recovered by the EFCC and did not include seized properties or other non-cash assets.
“Note, and the President was very clear, not seized properties, or recovered looted funds, but liquid funds, from the EFCC will now be transferred to NELFUND,” the minister said.
Alausa added that the Federal Executive Council had also approved the transfer of unclaimed dividends from the Capital Market Trust Fund and Dormant Account Trust Fund to the student loan fund.
“This was also approved by FEC: that all unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund should also be directed to NELFUND, so that NELFUND will be financially buoyant to meet its growing obligations today,” he said.
The decision is expected to provide additional funding for NELFUND as demand for student loans continues to increase among Nigerian tertiary institution students.
NELFUND was established in 2024 following President Tinubu’s signing of the Student Loans (Access to Higher Education) Act into law.
The fund was created to provide interest-free loans to eligible students in tertiary institutions and ease the financial burden associated with higher education.
As of August 8, NELFUND said it had disbursed more than N322bn for institutional fees and upkeep allowances to over 1.6 million students across the country.
The latest funding arrangement is expected to strengthen the capacity of the scheme to accommodate more beneficiaries.
The development also comes amid the Federal Government’s broader efforts to expand access to tertiary education and reduce financial barriers for students.
By directing liquid EFCC recoveries and specified unclaimed funds to NELFUND, the government said it intends to create a more sustainable funding base for the student loan programme.
The move is expected to further increase the number of students who can access financial assistance under the Federal Government’s higher education financing scheme.
