President Bola Tinubu has directed that recovered funds from the Economic and Financial Crimes Commission (EFCC), unclaimed dividends and funds from dormant accounts be channelled to the Nigerian Education Loan Fund (NELFUND) to support the education of Nigerian students.
The Minister of Education, Dr Tunji Alausa, disclosed this while briefing State House correspondents after the Federal Executive Council (FEC) meeting presided over by Tinubu at the Presidential Villa in Abuja.
NELFUND was established under the Student Loans (Access to Higher Education) (Repeal and Re-enactment) Act, 2024, which Tinubu signed into law on April 3, 2024.
Alausa said the President directed that recovered funds, unclaimed dividends from the capital market and funds in dormant accounts should be redirected to NELFUND to strengthen the fund’s finances and enable it to meet its growing obligations to students.
“The President has directed — and this was endorsed by FEC — that all seized funds by the EFCC should be directed to NELFUND to fund the education of our children,” he said.
The minister said the decision reflected the importance the administration attaches to the education and future of Nigerian children.
He explained that the measure would help ensure that NELFUND remains financially capable of meeting increasing demands for student loans.
Alausa also disclosed that the President directed, and FEC approved, the transfer of unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.
“NELFUND is financially buoyant to meet its growing obligations,” he said.
Legal Review Underway
The minister said legal reviews were being conducted to determine the necessary changes required to ensure that the planned transfers comply with existing laws and provide the necessary legal clarity.
However, he clarified that funds currently involved in legal disputes would not be transferred.
According to Alausa, only unencumbered funds that have been recovered and are legally available for transfer will be considered under the arrangement.
“Funds currently subject to legal challenges will be excluded from the transfer process,” he said.
He added that the government intends to use the recovered resources to prioritise the education of Nigerian children and support the growing obligations of NELFUND.
