By Eshioromeh Sebastian
The Federal Executive Council (FEC) has approved the diversion of recovered funds from the Economic and Financial Crimes Commission (EFCC) and all unclaimed dividends from capital market and dormant accounts to the Nigerian Education Loan Fund (NELFUND).
Minister of Education, Dr Tunji Alausa, disclosed this to State House correspondents on Wednesday after the FEC meeting, presided over by President Bola Tinubu at the Aso Rock Villa, Abuja.
Alausa said the presidential directive, which received FEC’s backing, is aimed at sustaining NELFUND’s growing funding obligations as demand for student loans surges across the country.
“The president, in his benevolence, has now directed that all funds recovered by the Economic and Financial Crimes Commission be diverted to NELFUND to continue to support its funding,” Alausa announced.
He added: “This was also approved by FEC: that all unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund should also be directed to NELFUND, so that NELFUND will be financially buoyant to meet its growing obligations today.”
The minister, however, clarified that the directive only applies to liquid, unencumbered funds — not seized properties or assets under legal contention.
“Note, and the President was very clear, not ceased properties, or recovered looted funds, but liquid funds from the EFCC will now be transferred to NELFUND,” he stressed.
Alausa described the move as consistent with President Tinubu’s campaign promise to ensure unimpeded access to education for all Nigerian students, regardless of their financial background.
The development comes as NELFUND faces increasing pressure to disburse loans to thousands of applicants across federal and state tertiary institutions, with many students still awaiting payment weeks into the academic session.
While the exact amount expected to be transferred remains undisclosed, industry analysts estimate that unclaimed dividends in Nigerian capital market accounts run into billions of naira, accumulated over decades from non-claimant investors and deceased shareholders.
Similarly, the Dormant Account Trust Fund, managed by the Central Bank of Nigeria, holds unoperated balances from commercial bank accounts that have remained inactive for extended periods.
But the Tinubu administration is banking on the move to keep its flagship student loan programme afloat, as initial government seed funding and budgetary allocations prove insufficient to meet the overwhelming demand.
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