President Bola Tinubu has issued a directive ordering that liquid funds recovered by the Economic and Financial Crimes Commission (EFCC) be redirected to the Nigerian Education Loan Fund (NELFUND) to strengthen the loan scheme's finances. The Federal Executive Council (FEC) also approved a plan to channel unclaimed dividends from two capital market trust funds into NELFUND.
Minister of Education Dr Tunji Alausa disclosed this on Wednesday, August 19, while speaking to State House correspondents after an FEC meeting in Abuja, as reported by The Punch. Alausa framed both approvals as consistent with a pledge Tinubu made during his campaign to widen access to education for Nigerian students.
Details of the EFCC Fund Redirection Directive
Alausa quoted the president directly, saying: "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." The minister was careful to draw a distinction between the types of recoveries covered by the directive. He said the president was explicit that only unencumbered liquid cash, not seized properties or looted assets still tied up in legal proceedings, would be transferred to the fund.
"Note, and the President was very clear, not ceased properties, or recovered looted funds, but liquid funds, from the EFCC will now be transferred to NELFUND," Alausa said.
Unclaimed Dividends from Capital Market Trust Funds
Alausa said the Federal Executive Council separately approved a directive to channel unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund into NELFUND. He said the move would strengthen NELFUND's capacity to meet growing demand for student loans. The move to redirect unclaimed dividends follows a pattern seen in other jurisdictions, where dormant financial assets held in trust are repurposed for public benefit programmes rather than left idle. In Nigeria's case, the Capital Market Trust Fund and the Dormant Account Trust Fund hold funds that investors and account holders have not claimed over extended periods.
The combined inflows from EFCC recoveries and dormant financial instruments are intended to make NELFUND robust enough to honour its expanding obligations, according to the minister.
NELFUND's Current Challenges and Context
NELFUND, which disburses tuition and other education-related costs directly to institutions on behalf of qualifying students, has faced scrutiny in recent weeks over the handling of funds. A separate controversy involving institutions accused of collecting payments from both students and NELFUND without issuing refunds had already drawn attention to the scheme's administration ahead of this latest announcement. The directive from President Tinubu is expected to provide additional financial resources to address these challenges and meet the growing demand for student loans across Nigerian universities and other tertiary institutions.
