Minister of Education, Tunji Alausa
President Bola Ahmed Tinubu has opened a new funding pathway for the Nigerian Education Loan Fund, NELFUND, directing that all cleared and unencumbered funds recovered by the Economic and Financial Crimes Commission, EFCC, be channelled to the Fund to strengthen its long-term financial sustainability and expand access to tertiary education for Nigerian students.
The President has also directed that funds from unclaimed dividends and dormant accounts be considered for transfer to NELFUND, subject to the laws governing the respective funds.
The Minister of Education, Dr. Maruf Tunji Alausa, described the directives as a significant step towards securing the long-term sustainability of NELFUND as the student loan programme continues to expand.
Speaking on Monday in Abuja, Alausa said the directive would ensure that resources recovered on behalf of Nigerians are put to productive use, particularly in creating greater opportunities for young people.
“As you heard me at the last press briefing following the last Federal Executive Council meeting, Mr. President mentioned that we need to make NELFUND financially buoyant and sustainable into the future. During that Council meeting, Mr. President directed that all seized funds, unencumbered funds free of litigation, by the Economic and Financial Crimes Commission should be diverted to NELFUND to support the growing obligations of the Fund,” the Minister said.
He stressed that only funds that have been legally cleared and are free from litigation or other encumbrances will be considered for transfer.
“Together with the directives by Mr. President on the seized EFCC funds, which will now be directed to fund NELFUND, Mr. President also directed that all unclaimed dividends from the capital market trust funds, as well as funds in the dormant account trust fund, should also be moved to support the financial sustainability of NELFUND,” he said.
Dr. Alausa explained that the process would be guided by the relevant legal provisions, with the Attorney-General of the Federation working with the Ministers of Finance and Education and other relevant institutions to establish the modalities for implementation.
“During that meeting as well, Mr. President directed the Minister of Finance, myself and the Attorney-General of the Federation to work on the modalities to operationalising this. More importantly, the Attorney-General will review the Act setting up the unclaimed dividend trust fund as well as the dormant account trust fund to see how we can be legally compliant in moving those funds,” Dr. Alausa said.
He added that any necessary amendments to the relevant laws would be considered to ensure full legal compliance.
“If changes would have to be made to the Act, whatever, the Attorney-General is looking into that,” he said.
The Minister said the development represents an important opportunity for Nigerian students, particularly as the administration continues to expand access to education and create pathways for young Nigerians to contribute meaningfully to national development.
“This is a time that is great for Nigerian students. You have a President, President Bola Ahmed Tinubu, that believes fervently and benevolently in education and continues to push day and night to ensure that every single Nigerian youth gets the best opportunity to be useful to themselves, useful to their community, useful to the country and the global world at large,” he said.
He expressed appreciation to President Tinubu for the political support and funding being provided to advance the administration’s education agenda.
“We thank President Bola Ahmed Tinubu for the political support as well as the funding that Mr. President has given us in championing his mandate and his directive to myself and the Minister of State, which is that every single Nigerian child in this country, every single Nigerian student in this country should have the best quality and the best education that is comparable to anywhere in the world,” the Minister said.
Alausa said the administration’s investments were already yielding improvements across the education sector, including in the quality of education, services delivered to students and the welfare of academic and non-academic staff in tertiary institutions.
He added that the government was extending these interventions to basic and senior secondary education as part of its broader effort to strengthen the education system.
“We’ve never had it so good in the education sector,” Dr. Alausa said, while thanking the President for his continued support and determination to reposition Nigeria’s education system.
The Minister said the new funding arrangement would complement existing sources of financing for NELFUND and provide a stronger foundation for meeting its growing obligations.
“But to summarise, NELFUND, beyond the 15 per cent allocation from the development levy, is now positioned to be financially buoyant into the near future, into the distant future and sustainably to eternity,” he said.
Dr. Alausa noted that more than 1.2 million Nigerian tertiary institution students are currently benefiting from NELFUND.
As of August 8, NELFUND had disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries nationwide.
NELFUND was established in 2024 after President Tinubu signed the Student Loans Access to Higher Education Act into law, providing interest-free loans to eligible students in tertiary institutions.
The Minister said the significance of the new funding direction extends beyond immediate financial assistance, as it creates a pathway through which resources recovered from the past can be transformed into educational opportunities that will shape Nigeria’s future.
He said sustained investment in education would help build the skilled and productive workforce required to drive national development and support Nigeria’s long-term economic ambitions.
Federal Ministry of Education will continue to work with NELFUND and all relevant government institutions to support the effective implementation of the new funding arrangements, while ensuring that the process remains within the law and focused on its intended beneficiaries.
Dr. Alausa reaffirmed the Ministry’s commitment to expanding access to quality education and ensuring that financial constraints do not stand in the way of qualified Nigerian students pursuing tertiary education.
