The Nigerian Education Loan Fund (NELFUND) has urged lawmakers to support the smooth rollout of the newly approved Development Levy, which comes into effect on January 1, 2026.
The levy, introduced under the National Taxation Act (NTA) 2025, will impose a four per cent charge on the assessable profits of taxable companies. Exemptions apply to small and non-resident firms as well as hydrocarbon-related profits. Of the total levy, 25 per cent has been earmarked for NELFUND to expand student loan access across the country.
Managing Director and Chief Executive Officer of NELFUND, Mr. Akintunde Sawyerr, described the allocation as a milestone for education financing. However, he stressed that its success would depend on timely budget approvals, efficient fund releases, and extensive public awareness campaigns.
“This allocation represents a turning point for Nigeria’s education financing. With it, we can strengthen our systems, scale our reach, and better serve students. But to achieve real impact, we need strong collaboration with the National Assembly on appropriation and sensitisation, alongside efficient releases by the Ministry of Finance and the Office of the Accountant-General,” Sawyerr said.
To prepare for implementation, NELFUND outlined four priority actions:
Launching nationwide sensitisation campaigns for students, families, and institutions.
Expanding digital platforms to ensure transparent loan applications and disbursements.
Strengthening partnerships with tertiary institutions for smooth loan administration and repayment.
Promoting inclusivity to reach underserved regions and vulnerable groups.
The Fund reaffirmed its commitment to accountability and transparency, pledging that every allocation would directly support access to higher education and boost Nigeria’s human capital development.
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