Tinubu directs EFCC cash recoveries, unclaimed dividends to fund student loans

President Bola Tinubu has ordered that liquid funds recovered by the Economic and Financial Crimes Commission (EFCC) and unclaimed dividends from specific government trust funds be redirected to the Nigerian Education Loan Fund (NELFUND).

This directive, disclosed by the Minister of Education, Tunji Alausa, aims to strengthen NELFUND's financial base as the demand for student loans increases. The Federal Executive Council also approved channeling unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.

Alausa clarified that the directive specifically targets liquid funds that have been legally cleared and are not subject to disputes. It does not include properties recovered or seized by the EFCC. The President emphasized that only cleared liquid funds will be transferred.

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has been instructed to collaborate with the Ministry of Education to address any legal or administrative hurdles to the new funding arrangement. This move aligns with President Tinubu's commitment to expanding access to higher education through student loans.

NELFUND, established under the 2024 Student Loans (Access to Higher Education) Act, has already disbursed over N322 billion for institutional fees and upkeep allowances to more than 1.6 million students nationwide as of August 8. The fund had previously extended the application deadline for the 2025/2026 academic session.

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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.