President Bola Tinubu has issued a directive mandating that funds recovered by the Economic and Financial Crimes Commission (EFCC) and unclaimed dividends from the Nigerian capital market be channeled into the Nigerian Student Loan Scheme. This decision aims to provide a sustainable and predictable funding source for the scheme, which is designed to support tertiary education students across the country.
Source of Funding for Student Loans
According to a statement issued by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, the directive is part of efforts to ensure the long-term viability of the student loan program. The recovered funds from the EFCC, which include assets and cash forfeited to the federal government, will be deposited into a dedicated account managed by the Nigerian Education Loan Fund (NELFUND). Similarly, unclaimed dividends—shares and cash payments that have not been collected by shareholders for over a decade—will also be redirected to the fund.
Ngelale explained that the President's order is intended to create a robust financial base for the scheme, which was established to provide interest-free loans to Nigerian students in public tertiary institutions. The directive also includes a provision for the regular auditing of the fund to ensure transparency and accountability in its management.
Implementation and Oversight
The President has instructed the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, to work with the EFCC and the Securities and Exchange Commission (SEC) to identify and transfer all eligible recovered funds and unclaimed dividends. The SEC, which regulates the capital market, will be responsible for compiling a list of unclaimed dividends and ensuring their transfer to NELFUND.
According to the statement, the move is expected to generate billions of naira annually, providing a steady stream of revenue for the student loan scheme. The scheme, which was signed into law in April 2024, has already begun processing applications from students in federal universities, polytechnics, and colleges of education. The President emphasized that the funding mechanism will prevent the scheme from relying solely on budgetary allocations, which are often subject to delays and cuts.
Impact on Students and the Economy
The directive is seen as a significant step towards expanding access to higher education in Nigeria, where many students are unable to afford tuition fees. The Nigerian Education Loan Fund (NELFUND) has reported that over 100,000 students have applied for loans since the scheme's launch, with disbursements expected to begin in the coming weeks. The additional funding from recovered assets and unclaimed dividends is expected to accelerate the processing of these applications and extend the scheme to more students.
Ngelale noted that the President's decision aligns with his administration's commitment to fighting corruption and using recovered assets for the benefit of the Nigerian people. He added that the government will also explore other sources of funding, including contributions from corporate organizations and international development partners, to further strengthen the scheme.
The directive has been welcomed by education stakeholders, who see it as a practical solution to the chronic underfunding of the education sector. However, some analysts have raised concerns about the transparency of the fund's management, calling for strict oversight to prevent mismanagement. The President has assured that the fund will be subject to regular audits by the Office of the Auditor-General of the Federation, and that any misuse of funds will be met with severe penalties.
