President Bola Tinubu has directed that eligible cash recovered by the Economic and Financial Crimes Commission (EFCC) be channelled to the Nigerian Education Loan Fund (NELFUND) to strengthen funding for the federal student loan programme.
The directive was disclosed by the Minister of Education, Tunji Alausa, after a Federal Executive Council meeting in Abuja. The government said the move is intended to give NELFUND additional financial capacity as demand for student loans continues to increase.
The Federal Executive Council also approved the transfer of unclaimed dividends held by the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND. Reports put the value of Nigeria’s unclaimed dividends at about ₦242 billion.
Alausa clarified that the EFCC directive applies specifically to liquid, unencumbered funds that are not subject to ongoing legal disputes. Seized properties and other assets that cannot immediately be converted into cash are not covered by the directive.
The government said the Attorney-General and Minister of Justice, Lateef Fagbemi, will work with relevant agencies to address the legal and operational requirements for transferring the funds, particularly those held under existing trust arrangements.
NELFUND was established to provide financial assistance to eligible students in Nigerian tertiary institutions. The fund said it had disbursed more than ₦322 billion in institutional fees and upkeep allowances to over 1.6 million students as of August 8.
The latest decision represents a significant expansion of the funding sources available to the student loan scheme. Supporters say directing legally available recovered funds toward education could help widen access to tertiary education, while ensuring that more students can meet tuition and living expenses.
However, financial and legal experts are expected to closely examine how the transfers are implemented, particularly the treatment of unclaimed dividends and dormant funds, which are subject to specific legal and regulatory frameworks.
The Presidency says the initiative reflects Tinubu’s broader commitment to expanding access to higher education and ensuring that the growing obligations of NELFUND can be met sustainably.
Leave a comment