President Bola Ahmed Tinubu has directed the Economic and Financial Crimes Commission (EFCC) to channel legally cleared funds recovered from corruption proceeds into the Nigerian Education Loan Fund (NELFUND), as the Federal Government moves to strengthen the financing of tertiary education in Nigeria.
The directive was disclosed by the Minister of Education, Dr Tunji Alausa, after the fourth meeting of the Federal Executive Council (FEC) in 2026 at the State House, Abuja.
According to the minister, the President also directed relevant government agencies to explore the use of resources from the Unclaimed Dividends Trust Fund and Dormant Accounts Trust Fund to support NELFUND, subject to the laws governing those funds.
The development could provide an additional source of financing for Nigeria’s expanding student-loan programme, which has already provided support to more than one million students across public tertiary institutions.
What Did President Tinubu Order?
President Tinubu directed that all legally cleared and liquid funds recovered by the EFCC that are available for transfer should be channelled to NELFUND.
However, the directive does not mean that every asset seized by the EFCC will automatically be transferred.
Education Minister Tunji Alausa clarified that the directive applies to liquid funds that have been legally recovered and are no longer subject to litigation.
Funds or properties still involved in legal proceedings will not be transferred under the directive.
This distinction is important because the government’s plan concerns money that has already been legally cleared for use, rather than assets whose ownership or recovery is still being challenged in court.
Only Legally Cleared Funds Will Be Transferred
The Federal Government stressed that the money must be legally available before it can be transferred to NELFUND.
According to Alausa, funds that remain subject to legal challenges will not form part of the resources transferred to the education loan scheme.
The minister explained that the government intends to identify cleared and unencumbered funds that legally belong to Nigeria and Nigerians before transferring them to NELFUND.
This means the process will involve legal and administrative verification before any funds are moved.
Attorney-General and Other Agencies to Develop Transfer Framework
President Tinubu has also directed several government agencies to work out the legal and operational arrangements required to implement the decision.
The agencies involved include:
- Office of the Attorney-General of the Federation;
- Ministry of Finance;
- Ministry of Education;
- Debt Management Office (DMO);
- EFCC; and
- other relevant government institutions.
The Attorney-General is expected to work with the EFCC Chairman to identify recovered funds that are legally available for transfer.
For the Unclaimed Dividends Trust Fund and Dormant Accounts Trust Fund, the government will similarly examine the existing laws governing the funds before determining how their resources can legally support NELFUND.
Why Is the Government Directing Recovered Funds to NELFUND?
The Federal Government sees education as one of the productive areas in which recovered public funds can be deployed.
The Education Minister said the decision is intended to help put NELFUND on a more sustainable financial footing as demand for student loans continues to increase.
The government’s position is that recovered public resources should be used to expand opportunities for Nigerians, particularly students who require financial assistance to access tertiary education.
President Tinubu has previously described NELFUND as an important part of the administration’s effort to expand access to tertiary education. In July, the State House also reported that the President had approved additional funding for NELFUND from money recovered by the EFCC.
More Than 1.2 Million Students Benefiting From NELFUND
The announcement comes as NELFUND continues to expand its reach across Nigeria.
According to Education Minister Tunji Alausa, more than 1.2 million Nigerian students are currently benefiting from NELFUND.
The minister said the Fund has disbursed:
| NELFUND Support | Amount Reported |
|---|---|
| Student upkeep allowances | More than ₦93 billion |
| Institutional fees | More than ₦250 billion |
| Students benefiting | More than 1.2 million |
The institutional payments have gone to public tertiary institutions, while upkeep allowances provide financial assistance directly to eligible students.
These figures demonstrate why the government is seeking additional and sustainable sources of funding for the scheme.
What the Development Means for Nigerian Students
For students currently relying on NELFUND or considering applying for the student loan, the government’s decision could be significant.
The additional funding could help NELFUND maintain and expand its ability to finance:
- institutional fees;
- student upkeep;
- eligible education-related costs; and
- future applicants entering the tertiary education system.
The immediate announcement, however, does not mean that students will automatically receive additional money.
The directive first requires the relevant government agencies to establish the legal and operational process for transferring eligible funds to NELFUND.
Students should therefore continue to rely on official NELFUND announcements regarding applications, approvals and disbursements.
Unclaimed Dividends and Dormant Accounts Also Targeted
The EFCC recoveries are not the only source of funding identified by the Federal Government.
President Tinubu also directed the government to examine the possibility of mobilising resources from the:
Unclaimed Dividends Trust Fund
These are dividends that have remained unclaimed within the Nigerian capital market system.
Dormant Accounts Trust Fund
These are funds associated with dormant bank accounts and other applicable financial resources governed by the relevant legislation.
However, Alausa emphasised that the government must comply with the laws establishing these funds before resources can be made available to NELFUND.
Therefore, the announcement represents a policy direction, while the actual transfer of money depends on the necessary legal and administrative procedures.
What Students Should Understand About NELFUND
NELFUND is a student loan programme, not a scholarship.
The money provided to beneficiaries is intended to be repaid under the terms of the programme.
The importance of the latest government decision is therefore not that students are being given free money, but that the government is seeking to strengthen the financial base supporting the student-loan system.
With more sustainable funding, NELFUND could potentially continue supporting more students without relying entirely on conventional annual government allocations.
Take a sneak pick of NELFUND Student Loan details to see the Approved Universities, Eligibility, How to Apply, Repayment Period and Latest Federal Government Updates.
Government Links Education Financing to Nigeria’s Future
The Education Minister said President Tinubu considers education one of the most productive uses of recovered public funds.
The reasoning is that investment in education contributes to the development of the human capital required to support Nigeria’s long-term economic ambitions.
Alausa linked the policy to the administration’s ambition of developing Nigeria into a $1 trillion economy, arguing that a stronger education system is necessary to produce the skills and talent required for such economic growth.
This places NELFUND within the government’s broader human-capital strategy rather than treating it simply as a student-support programme.
What Happens Next?
The directive is expected to move into the implementation stage.
The next steps include:
- Identifying EFCC-recovered funds that are legally cleared.
- Determining which funds are free from litigation or other legal restrictions.
- Reviewing the laws governing unclaimed dividends and dormant accounts.
- Developing the legal framework for transferring eligible resources.
- Coordinating the process between the EFCC, Ministry of Education, Ministry of Finance, DMO and Attorney-General’s Office.
- Making the approved resources available to NELFUND once the required procedures are completed.
The government has not indicated that every recovered EFCC fund or every dormant account balance will be transferred.
The key condition remains legal clearance and compliance with the applicable laws.
What This Means for Future NELFUND Applicants
The announcement could be particularly important as demand for student loans continues to grow.
If additional funding is successfully mobilised, NELFUND could have greater capacity to support new applicants while continuing to meet obligations to existing beneficiaries.
However, prospective students should not change their education plans solely because of the announcement.
Students should still:
- confirm that their institution participates in NELFUND;
- monitor the official NELFUND portal;
- submit applications through official channels;
- provide accurate student and banking information; and
- understand that NELFUND financing is a loan that must be repaid.
Frequently Asked Questions
Will all EFCC-seized assets be given to NELFUND?
No. The directive specifically concerns legally cleared liquid funds recovered by the EFCC. Assets or funds still subject to legal challenges are excluded.
Will unclaimed dividends automatically be transferred to NELFUND?
Not automatically. The government must first ensure that any transfer complies with the laws governing the Unclaimed Dividends Trust Fund.
What about dormant bank accounts?
The government also wants to examine resources in the Dormant Accounts Trust Fund for possible mobilisation to NELFUND, subject to the applicable laws.
Will students receive more money because of this announcement?
Not immediately. The announcement concerns additional funding for NELFUND. The government agencies still have to establish the legal and operational framework for the transfers.
How many students currently benefit from NELFUND?
Education Minister Tunji Alausa said more than 1.2 million students were benefiting from the scheme at the time of the announcement.
Is NELFUND a scholarship?
No. It is an education loan programme and beneficiaries are expected to repay the funds according to the applicable terms.
Conclusion
President Bola Tinubu’s directive to channel legally cleared EFCC recoveries, alongside potentially available resources from unclaimed dividends and dormant accounts, into NELFUND represents a new attempt to strengthen the financial foundation of Nigeria’s student-loan programme.
The government has made clear that the funds must first be legally cleared and free from litigation before they can be transferred.
For students, the significance lies in what the policy could mean over time: a stronger and potentially more sustainable source of financing for tertiary education as the number of Nigerians seeking NELFUND support continues to grow.
The next important development will be the implementation of the directive and confirmation of exactly how much money can legally be transferred to NELFUND.
A Travel Consultant dedicated to helping students, job seekers, and professionals discover life-changing opportunities around the world. He holds a Diploma in Human Resource Management, Project Management & Ticketing, Degree in Microbiology, and Master’s in Public Health.