NELFUND gets boost from recovered EFCC funds, unclaimed dividends — Alausa
By Uji A Iliyas, Abuja
President Bola Ahmed Tinubu has directed that recovered funds from the Economic and Financial Crimes Commission (EFCC), along with unclaimed dividends and dormant bank accounts, be channelled into the Nigerian Education Loan Fund (NELFUND) to strengthen its long-term sustainability.
Minister of Education, Dr. Maruf Tunji Alausa, disclosed this on Monday, August 24, 2026, describing the directive as a major step toward securing NELFUND’s future as the student loan scheme continues to expand nationwide.
The minister said the directive was first raised during the last Federal Executive Council meeting, where President Tinubu ordered that all EFCC-recovered funds that are legally cleared and free of litigation be diverted to NELFUND to support its growing obligations.
“Mr. President directed that all seized funds, unencumbered and free of litigation, by the EFCC should be diverted to NELFUND to support the growing obligations of the Fund,” Alausa said, adding that only funds cleared of legal encumbrances would qualify for transfer.
He further revealed that the President also ordered that unclaimed dividends from capital market trust funds and monies in dormant account trust funds be considered for the same purpose, subject to existing laws.
Dr. Alausa explained that implementation would be handled jointly by the Attorney-General of the Federation, the Minister of Finance, and himself, who have been tasked with developing the legal and operational framework for the fund transfers. He noted that the Attorney-General would review the laws establishing the unclaimed dividends and dormant accounts trust funds, with amendments considered where necessary to ensure compliance.
The minister described the development as a turning point for Nigerian students, crediting President Tinubu’s commitment to education as the driving force behind the initiative.
He said the administration remains focused on ensuring every Nigerian child and student has access to quality education comparable to global standards.
Highlighting progress already made, Alausa said improvements were visible across the education sector, from teaching quality to student welfare and support for academic and non-academic staff in tertiary institutions.
He added that similar interventions are being extended to basic and senior secondary education.
“We’ve never had it so good in the education sector,” the minister said, commending the President’s continued support for reforms in the sector.
He noted that beyond its statutory 15 percent allocation from the education development levy, NELFUND is now positioned for stronger financial footing going forward, thanks to the new funding streams.
Dr. Alausa disclosed that over 1.2 million Nigerian tertiary students are currently benefiting from the loan scheme. As of August 8, NELFUND had disbursed more than N322 billion in institutional fees and upkeep allowances to beneficiaries across the country.
NELFUND was established in 2024 following President Tinubu’s signing of the Student Loans Access to Higher Education Act, which provides interest-free loans to eligible tertiary students.
The minister said the new funding arrangement reflects a broader vision of turning recovered public resources into lasting educational opportunities, helping to build a skilled workforce to drive Nigeria’s economic development.
The Federal Ministry of Education, he said, will continue working with NELFUND and other government institutions to ensure the new funding arrangements are implemented lawfully and reach their intended beneficiaries.