President Bola Ahmed Tinubu has directed that all recovered funds held by the Economic and Financial Crimes Commission (EFCC) that are legally cleared, unencumbered and free from litigation be channelled into the Nigerian Education Loan Fund (NELFUND) to strengthen the sustainability of the student loan scheme.

The President also directed that unclaimed dividends and funds held in dormant account trust funds be considered for transfer to NELFUND, subject to existing laws governing the funds.

Minister of Education, Dr. Maruf Tunji Alausa, disclosed this on Monday, describing the directive as a major intervention that would provide NELFUND with additional resources to meet its growing obligations and expand access to tertiary education.

According to the Minister, the President had raised the need to make NELFUND financially buoyant and sustainable during the recent Federal Executive 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,” Alausa said.

He, however, stressed that only funds that have been legally cleared and are free from litigation or other encumbrances would qualify for transfer.

The Minister explained that the President had equally directed the Ministers of Finance and Education, alongside the Attorney-General of the Federation, to develop the modalities for implementing the new funding arrangement.

He said the Attorney-General would review the laws establishing the unclaimed dividend trust fund and dormant account trust fund to determine how the funds could be transferred to NELFUND in full compliance with the law.

“If changes would have to be made to the Act, whatever, the Attorney-General is looking into that,” Alausa said.

The Minister described the development as a major boost for Nigerian students, noting that the recovered resources would be transformed into educational opportunities for young Nigerians.

He said the intervention was consistent with President Tinubu’s commitment to ensuring that Nigerian youths have access to quality education and the opportunity to contribute meaningfully to national development.

“This is a time that is great for Nigerian students. You have a President, President Bola Ahmed Tinubu, 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,” he said.

Alausa also commended President Tinubu for the political support and funding provided to advance the Federal Government’s education agenda.

He said the administration’s interventions were already producing improvements across the education sector, including tertiary education, student welfare and the conditions of academic and non-academic staff.

The Minister further disclosed that more than 1.2 million Nigerian tertiary institution students are currently benefiting from NELFUND.

As of August 8, 2026, NELFUND had disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries across the country.

Alausa said the new funding arrangement would complement NELFUND’s existing sources of revenue, including the statutory 15 per cent allocation from the development levy, and provide a stronger financial foundation for the Fund’s long-term operations.

NELFUND was established in 2024 following President Tinubu’s signing of the Student Loans Access to Higher Education Act into law, providing interest-free loans to eligible students in Nigerian tertiary institutions.

The Minister said the significance of the latest directive goes beyond immediate financial support, stressing that it creates a mechanism through which resources recovered from the past can be converted into opportunities that will shape Nigeria’s future.

He maintained that sustained investment in education remained critical to developing the skilled workforce required to drive economic growth and achieve the country’s long-term development objectives.

The Federal Ministry of Education, he added, would continue to work with NELFUND and other relevant government institutions to ensure the effective and lawful implementation of the new funding arrangements.

Alausa reaffirmed the Ministry’s commitment to expanding access to quality education and ensuring that financial constraints do not prevent qualified Nigerian students from pursuing tertiary education.