Student loan demand grows as Tinubu expands NELFUND funding base

…As EFCC recoveries, unclaimed dividends, dormant funds targeted to strengthen scheme

The Federal Government is seeking to expand the funding base of the Nigerian Education Loan Fund, NELFUND, as demand for student loans grows, with legally cleared funds recovered by the Economic and Financial Crimes Commission, EFCC, unclaimed dividends and dormant accounts being considered as additional sources of financing.

President Bola Tinubu had directed that all funds recovered by the EFCC that are legally cleared, unencumbered and free from litigation be channelled to NELFUND to strengthen the Fund’s capacity to meet its growing obligations.

The Minister of Education, Tunji Alausa, disclosed this in Abuja on Monday, according to a statement issued by his Special Adviser on Media and Communications, Ikharo Attah.

Mr Alausa said the president had also directed that funds held under unclaimed dividends and dormant accounts be considered for transfer to NELFUND, subject to the laws governing such funds.

He stressed that only funds that had been legally cleared and were free from litigation or other encumbrances would qualify for transfer.

“As you heard me at the last press briefing following the last Federal Executive Council meeting, Mr President mentioned that we need to make NELFUND financially buoyant and sustainable into the future.

“During that council meeting, Mr President directed that all seized funds, unencumbered funds free of litigation, by the Economic and Financial Crimes Commission should be diverted to NELFUND to support the growing obligations of the Fund,” Mr Alausa said.

The move comes as NELFUND continues to expand its student loan programme, with more than 1.2 million students currently benefiting from the scheme.

Mr Alausa said that, as of August 8, NELFUND had disbursed more than N322 billion in institutional fees and upkeep allowances to beneficiaries across the country.

He said the growing scale of the programme made it necessary to establish a broader and more sustainable funding framework capable of meeting the Fund’s financial obligations in the years ahead.

The minister said the new funding arrangement would complement NELFUND’s existing sources of financing, including the 15 per cent allocation from the Tertiary Education Trust Fund development levy.

He said the Federal Government’s objective was to ensure that financial constraints did not prevent qualified Nigerian students from gaining access to tertiary education.

To implement the new funding arrangement, Mr Alausa said the Attorney-General of the Federation would work with the Ministers of Finance and Education and other relevant institutions to develop the necessary modalities.

He said the Attorney-General would also review the laws establishing the Unclaimed Dividend Trust Fund and Dormant Account Trust Fund to determine how the funds could legally be transferred to NELFUND.

“During that meeting as well, Mr President directed the Minister of Finance, myself and the Attorney-General of the Federation to work on the modalities to operationalising this.

“More importantly, the Attorney-General will review the Act setting up the unclaimed dividend trust fund as well as the dormant account trust fund to see how we can be legally compliant in moving those funds,” he said.

Mr Alausa described the proposed funding expansion as an opportunity to increase access to education and transform recovered public resources into opportunities for young Nigerians.

“This is a time that is great for Nigerian students. You have a president that believes fervently and benevolently in education and continues to push day and night to ensure that every single Nigerian youth gets the best opportunity to be useful to themselves, useful to their community, the country and the global world at large,” he said.

The minister said the Federal Government was also extending its investment in education to basic and senior secondary education as part of efforts to strengthen the entire education system.

“We’ve never had it so good in the education sector,” he said.

According to him, sustained investment in education was critical to developing the skilled workforce required to drive Nigeria’s economic transformation and meet the country’s long-term development ambitions.

He said the proposed funding sources would allow resources recovered on behalf of Nigerians to be redirected towards building human capital through education.

Mr Alausa reaffirmed the commitment of the Ministry of Education to working with NELFUND and other relevant government institutions to ensure that the new funding arrangements were implemented transparently and in accordance with the law.

He also reiterated the ministry’s commitment to expanding access to quality tertiary education and ensuring that financial constraints did not prevent qualified Nigerian students from pursuing their studies.

**NAN**