The federal government has said only monies recovered by the Economic and Financial Crimes Commission (EFCC) that are legally cleared and free from litigation will be channelled into the Nigerian Education Loan Fund (NELFUND).
Key Highlights
- Only legally cleared EFCC recoveries free from litigation will be considered for transfer to NELFUND.
- Education Minister Maruf Alausa said the government would strictly follow due process.
- President Bola Tinubu directed that eligible recovered funds be considered as an additional funding source for NELFUND.
- Other proposed sources include unclaimed dividends in capital market trust funds and the dormant account trust fund.
- The Attorney-General of the Federation will review relevant laws to ensure the proposed transfers comply with legal requirements.
Minister of Education, Maruf Alausa, disclosed this on Monday, while explaining President Bola Tinubu’s directive on new funding sources for the student loan scheme.
Alausa had announced the directive following last week’s Federal Executive Council (FEC) meeting, where the president directed that eligible recovered funds be considered as an additional funding source for NELFUND.
The minister said the funds must be “seized funds, unencumbered funds free of litigation” before they can be transferred to the education loan fund.
He, however, stressed that the government would strictly adhere to due process.
“Only funds that have been legally cleared and are free from litigation or other encumbrances will be considered for transfer,” Alausa said.
Apart from EFCC recoveries, Tinubu also directed that funds from unclaimed dividends in capital market trust funds and the dormant account trust fund should be considered for transfer to NELFUND, subject to existing laws governing the funds.
Alausa said the attorney-general of the federation and minister of justice would work with the ministers of finance and education, as well as other relevant institutions, to develop the modalities for implementing the directive.
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“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,” he said.
The minister added that any necessary amendments to the relevant laws would be considered to ensure that the transfer of funds complied fully with legal requirements.
“If changes would have to be made to the Act, whatever, the attorney-general is looking into that,” he said.
Alausa described the directive as a major step towards ensuring the long-term financial sustainability of NELFUND as the student loan programme continues to expand.
“This is a time that is great for Nigerian students. You have a president 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,” he said.
According to the minister, the new funding sources will complement the existing 15 percent allocation from the development levy and help position NELFUND to remain financially sustainable in the long term.
Providing an update on the scheme, Alausa said more than 1.2 million students in Nigerian tertiary institutions are currently benefiting from NELFUND.
He disclosed that as of August 8, the fund had disbursed more than N322 billion in institutional fees and upkeep allowances to beneficiaries across the country.
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.
Alausa said the new funding arrangement would go beyond providing immediate financial support to students, as it would create a mechanism for resources recovered from the past to be invested in educational opportunities for future generations.
In a statement signed by the minister’s Special Adviser on Media and Communications, Ikharo Attah, the Federal Ministry of Education said it would continue to work with NELFUND and other relevant government institutions to ensure effective implementation of the new funding arrangements.
The ministry also reiterated that the process would be conducted within the law and focused on the intended beneficiaries.
