President Bola Tinubu has directed legally cleared EFCC recoveries to NELFUND, with unclaimed dividends and dormant funds also being considered to strengthen student loans.
President Bola Ahmed Tinubu has directed that legally cleared and unencumbered funds recovered by the Economic and Financial Crimes Commission (EFCC) be channelled to the Nigerian Education Loan Fund (NELFUND) to strengthen the student loan scheme and expand access to tertiary education.
The directive, disclosed by Minister of Education Dr Tunji Alausa in Abuja on Monday, is part of efforts by the Federal Government to establish a sustainable funding framework for NELFUND as the number of beneficiaries and the Fund’s financial obligations continue to grow.
Alausa said only recovered funds that are legally cleared and free from litigation or other encumbrances would qualify for transfer to NELFUND.
He explained that President Tinubu had also directed that funds from unclaimed dividends and dormant accounts be considered as additional funding sources for the education loan scheme, subject to the laws governing those funds.
The minister said the Attorney-General of the Federation, in collaboration with the Ministers of Finance and Education and other relevant institutions, would develop the modalities for implementing the directive.
He added that the Attorney-General would review the legal frameworks governing the Unclaimed Dividend Trust Fund and Dormant Account Trust Fund to determine how the funds could be transferred to NELFUND in compliance with existing laws.
Alausa described the new funding arrangement as a significant opportunity for Nigerian students, saying it would help transform resources recovered on behalf of Nigerians into educational opportunities for young people.
The minister said the additional funding would complement NELFUND’s existing financing arrangements, including the 15 per cent allocation from the Tertiary Education Trust Fund development levy.
According to Alausa, more than 1.2 million students in Nigerian tertiary institutions are currently benefiting from NELFUND.
He further disclosed that, as of August 8, 2026, the Fund had disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries across the country.
The latest directive builds on the Federal Government’s broader effort to use recovered public resources to support education and human-capital development. President Tinubu previously linked EFCC asset recoveries to government programmes including NELFUND and other youth-focused interventions.
Alausa said the new funding pathway would place NELFUND on a stronger financial footing and enable it to meet its growing obligations as demand for student loans increases.
He stressed that sustained investment in education was essential to developing the skilled workforce required to drive Nigeria’s economic growth and long-term development.
The Minister of Education also said the Federal Government’s investment in education was being extended beyond tertiary institutions to basic and senior secondary education as part of efforts to strengthen the country’s education system.
He reaffirmed the ministry’s commitment to working with NELFUND and other government institutions to ensure that the new funding arrangement is implemented effectively and in accordance with the law.
The development comes as NELFUND continues to expand its student financing programme, with the government positioning recovered and otherwise idle public funds as potential additional resources for supporting qualified Nigerians seeking higher education.
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