The Nigerian Education Loan Fund (NELFUND) is a federal government agency established under the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024. President Bola Tinubu signed the legislation into law on April 3, 2024, creating the legal framework for a national student-loan system designed to expand access to higher education.
The Minister of Education, Dr. Tunji Alausa, disclosed the latest funding directive while briefing State House correspondents after a Federal Executive Council (FEC) meeting chaired by President Tinubu in the Council Chamber of the Presidential Villa, Abuja.
According to the minister, the president directed that funds recovered by the Economic and Financial Crimes Commission (EFCC), unclaimed dividends in the capital market, and money held in dormant bank accounts should be redirected to NELFUND. The objective is to provide the agency with a stronger and more sustainable financial base as its responsibilities and obligations continue to grow.
“The president has directed—and this was endorsed by the Federal Executive Council—that all funds seized and recovered by the EFCC should be directed to NELFUND to support the education of our children,” Dr. Alausa said. He emphasized that the education of Nigerian children cannot be postponed, describing it as a major priority for President Tinubu, who has promised to take every necessary step to protect the future of Nigerian students and young people.
The minister further explained that the president had also directed, with FEC approval, that unclaimed dividends held in capital-market trust funds and balances in dormant-account trust funds be transferred to NELFUND. Such resources, he said, would help the agency meet its increasing financial commitments, including the provision of student loans and related educational support.
However, Dr. Alausa clarified that the government would not transfer funds currently affected by legal disputes. He said legal reviews are underway to identify any amendments or procedures required to ensure that the process complies fully with existing laws. Only funds that are free from legal encumbrances and have been recovered on behalf of Nigerians will be considered for transfer.
“The funds currently subject to legal challenges will be excluded from the transfer process. The plan is to transfer unencumbered funds that were previously looted and rightfully belong to Nigerians,” he added.
He said the government is considering using the recovered resources to prioritize the education of Nigerian children, reinforcing its broader commitment to improving access to higher education and ensuring that financial hardship does not prevent qualified students from pursuing their studies.
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