The Federal Government has announced plans to strengthen the Nigerian Education Loan Fund, NELFUND, with monies recovered by the Economic and Financial Crimes Commission that have received full legal clearance for disbursement. The move is aimed at expanding access to student loans as demand continues to rise across tertiary institutions.
Minister of Education, Dr. Tunji Alausa, disclosed this on Wednesday in Abuja, saying the intervention would provide NELFUND with a more stable financial base. According to him, the government is committed to ensuring that the loan scheme remains viable and responsive to the needs of Nigerian students.
Dr. Alausa added that beyond recovered assets, the government is also exploring other funding streams. These include unclaimed dividends from the Capital Market Trust Fund and resources domiciled in the Dormant Account Trust Fund. He noted that both sources could offer additional liquidity to support the growing number of loan applicants.
He stressed that only funds that are liquid and have been legally cleared would be transferred to NELFUND. The minister explained that any money tied to ongoing litigation or other encumbrances would be excluded until due process is completed.
To implement the directive, the Attorney General of the Federation and Minister of Justice, the Minister of Finance, the Federal Ministry of Education and other relevant agencies have been tasked with developing a framework for the transfer. The framework is expected to outline the modalities for identifying, verifying and moving the funds into the loan scheme.
The minister said the expansion of NELFUND’s funding base comes at a critical time as the programme scales up nationwide. He revealed that more than 1.2 million Nigerian students are currently benefiting from the student loan scheme, with applications still being processed across federal and state institutions.
With the proposed injection, the government hopes to reduce reliance on annual budgetary allocations and create a self-sustaining model for student financing. Dr. Alausa noted that ensuring predictable funding will help more students complete their education without financial barriers and support the administration’s broader education reform agenda.
