President Bola Ahmed Tinubu has directed that legally cleared funds recovered by the Economic and Financial Crimes Commission (EFCC) be channelled into the Nigerian Education Loan Fund (NELFUND) to strengthen the student loan scheme and expand access to tertiary education.
The President also directed that funds from unclaimed dividends and dormant accounts be considered for transfer to NELFUND, subject to the relevant laws governing the funds.
The Minister of Education, Dr Maruf Tunji Alausa, disclosed this on Monday, August 24, 2026, describing the directive as a major step towards securing the long-term financial sustainability of NELFUND as its obligations continue to grow.
According to Alausa, only funds that have been legally cleared and are free from litigation or other encumbrances will be considered for transfer.
He said President Tinubu had directed the Minister of Finance, the Attorney-General of the Federation and the Minister of Education to work out the modalities for implementing the new funding arrangement.
The Attorney-General, the Minister said, would review the laws establishing the unclaimed dividend trust fund and dormant account trust fund to determine how the funds could legally be transferred to NELFUND.
Alausa explained that any necessary amendments to existing laws would be considered to ensure full legal compliance.
The Minister said more than 1.2 million Nigerian tertiary institution students are currently benefiting from NELFUND.
He added that, as of August 8, 2026, the Fund had disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries nationwide.
Alausa said the new funding arrangement would complement NELFUND’s existing sources of financing and provide a stronger foundation for meeting its growing obligations.
He noted that NELFUND currently receives a 15 per cent allocation from the development levy, but said the additional funding sources would strengthen the Fund’s financial sustainability.
The Minister described the initiative as an opportunity to transform recovered resources into educational opportunities for Nigerian youths.
He said sustained investment in education would help develop the skilled workforce required to drive national development and support Nigeria’s long-term economic ambitions.
NELFUND was established in 2024 following President Tinubu’s signing of the Student Loans Access to Higher Education Act into law. The Fund provides interest-free loans to eligible students in tertiary institutions.
Alausa reaffirmed the Federal Ministry of Education’s commitment to working with NELFUND and other relevant government institutions to ensure that the new funding arrangement is implemented transparently, lawfully and for the benefit of Nigerian students.
He stressed that financial constraints should not prevent qualified Nigerian students from pursuing tertiary education.
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