Nifemi Ibikunle
The Federal Government has commenced moves to create a legal framework for transferring recovered funds and other dormant public monies to the Nigeria Education Loan Fund to strengthen the student loan scheme.
The Minister of Education, Dr Tunji Alausa, disclosed this on Monday, saying the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, would review relevant laws governing unclaimed dividends and dormant accounts to determine how the funds could legally be channelled to NELFUND.
Alausa said the development followed President Bola Tinubu’s directive that funds recovered by the Economic and Financial Crimes Commission should be channelled to the student loan scheme.
The minister said the President had also directed that unclaimed dividends in the Capital Market Trust Fund and monies in the Dormant Account Trust Fund be considered for transfer to NELFUND.
He explained that Fagbemi was already working with the ministries of Finance and Education, as well as other relevant institutions, to develop the modalities for implementing the directive.
“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,” Alausa said.
He added that the legal review was necessary to ensure that the proposed transfer did not contravene existing laws.
“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,” the minister said.
According to him, any necessary amendments to the relevant laws would be considered if the legal review established that changes were required.
“If changes would have to be made to the Act, whatever, the Attorney-General is looking into that,” Alausa added.
The move is expected to provide NELFUND with additional funding as the number of students accessing the Federal Government’s interest-free loan programme continues to rise.
NELFUND was established in 2024 following the signing of the Student Loans Access to Higher Education Act by President Tinubu.
The scheme provides financial support, including institutional fees and upkeep allowances, to eligible students in tertiary institutions.
As of August 8, NELFUND said it had disbursed more than N322bn in institutional fees and upkeep allowances to over 1.6 million students across the country.
Alausa said the proposed funding arrangement would complement NELFUND’s existing sources of revenue and place the agency on a stronger financial footing.
He described the development as a major opportunity for Nigerian students, particularly as the Federal Government seeks to widen access to tertiary education.
“But to summarise, NELFUND, beyond the 15 per cent allocation from the development levy, is now positioned to be financially buoyant into the near future, into the distant future and sustainably to eternity,” he said.
The minister also credited the administration with increased investment in the education sector, saying the interventions were already producing improvements in the quality of education, student services and the welfare of academic and non-academic staff.
He said the Federal Government was also extending its interventions to basic and senior secondary education as part of efforts to strengthen the country’s education system.
“We’ve never had it so good in the education sector,” Alausa said.
The proposed transfer of recovered and dormant funds to NELFUND, however, will depend on the outcome of the legal review and any amendments that may be required to existing legislation.
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