President Bola Tinubu has approved a new funding arrangement aimed at strengthening the Nigerian Education Loan Fund (NELFUND), directing that eligible cash recoveries by the Economic and Financial Crimes Commission (EFCC) and unclaimed dividends from designated trust funds be channelled into the student loan scheme.
The Minister of Education, Dr Tunji Alausa, disclosed the decision while briefing State House correspondents after Wednesday’s Federal Executive Council meeting at the Presidential Villa in Abuja.
Alausa explained that the directive applies specifically to liquid cash recovered by the EFCC, and does not include seized properties or other non-cash assets.
“The President 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.
₦242bn in Unclaimed Dividends
The Federal Executive Council also approved the transfer of eligible unclaimed dividends held through the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.
According to figures from the Securities and Exchange Commission, unclaimed dividends in Nigeria are estimated at about ₦242 billion.
The value has increased over the years due to issues including outdated shareholder records, unresolved estates of deceased investors and difficulties linking some accounts to current banking information.
Alausa said the President had directed the Attorney-General of the Federation, Lateef Fagbemi, to work with the Ministries of Finance and Education as well as the Debt Management Office to determine how the funds can be legally transferred.
EFCC Recoveries to Support Student Loans
The minister clarified that the new arrangement does not mean that properties seized by the EFCC or other non-liquid assets will automatically be transferred to NELFUND.
Instead, the focus is on cash recoveries that are available and legally eligible for transfer.
The EFCC has recovered significant sums in both local and foreign currencies through its anti-corruption and financial crime investigations. The government now intends to use eligible liquid recoveries to strengthen the funding base of the student loan programme.
NELFUND Supports More Than 1.2 Million Students
Alausa said NELFUND has already become an important source of financial support for students across Nigeria.
According to the minister, more than 1.2 million Nigerian students are currently benefiting from the scheme.
He added that NELFUND has disbursed more than ₦93 billion in student stipends to beneficiaries in public tertiary institutions, while over ₦250 billion has been provided for institutional fees across federal and state-owned institutions.
The minister described the development as a major step towards expanding access to higher education for Nigerian students.
Government Begins Implementation
The Federal Government is expected to work through the relevant agencies to establish the legal and financial framework for transferring the funds.
The Attorney-General, Ministry of Finance, Ministry of Education and Debt Management Office will coordinate the process concerning the unclaimed dividend funds, while the EFCC will work with the government on identifying eligible liquid recoveries.
The government says the move is intended to provide NELFUND with a more sustainable source of funding as demand for student loans continues to grow.
The latest directive could significantly strengthen the student loan programme and reduce its dependence on annual government budgetary allocations.
