President Bola Ahmed Tinubu has directed that liquid funds recovered by the Economic and Financial Crimes Commission (EFCC) be channelled to the Nigerian Education Loan Fund (NELFUND) to strengthen the country’s student loan programme and expand access to higher education.
The Minister of Education, Tunji Alausa, disclosed this on Wednesday while briefing journalists at the State House shortly after the Federal Executive Council (FEC) meeting.
According to the minister, the decision forms part of efforts by the Federal Government to ensure that NELFUND has sufficient resources to meet the growing demand for student loans across the country.
“The President, in his benevolence, has now directed that all funds recovered by the Economic and Financial Crimes Commission be diverted to NELFUND to continue to support its funding,” Alausa said.
The minister, however, clarified that the directive applies specifically to liquid funds recovered by the EFCC and does not include seized properties or other non-liquid assets.
“Note, and the President was very clear, not seized properties, or recovered looted funds, but liquid funds, from the EFCC will now be transferred to NELFUND,” he explained.
Beyond recovered EFCC funds, the Federal Executive Council also approved the channelling of unclaimed dividends in the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.
The measures are aimed at improving the financial capacity of the student loan scheme and enabling it to support more Nigerian students seeking tertiary education.
NELFUND was established in 2024 following President Tinubu’s signing of the Student Loans (Access to Higher Education) Act into law. The scheme provides interest-free loans to eligible students in tertiary institutions, covering institutional fees and upkeep support.
The fund has continued to expand its operations since its establishment. As of August 8, NELFUND reported that it had disbursed more than N322 billion in institutional fees and upkeep allowances to over 1.6 million students across Nigeria.
The latest directive is expected to provide an additional source of funding for the scheme as the Federal Government seeks to make higher education more accessible to Nigerian students, particularly those who may otherwise struggle to meet the financial demands of tertiary education.
With the inclusion of recovered liquid funds, unclaimed dividends and dormant account resources, the administration is positioning NELFUND as a more financially sustainable mechanism for expanding access to education and supporting students nationwide.