Tinubu directs EFCC funds to support student loans

President Bola Tinubu has instructed that money recovered by the Economic and Financial Crimes Commission (EFCC) and unclaimed dividends from certain government trust funds be used for the Nigerian Education Loan Fund (NELFUND).

Minister of Education, Tunji Alausa, shared this news on Wednesday. He spoke to State House reporters after a Federal Executive Council meeting led by the President in Abuja.

Mr Alausa said the move aims to boost NELFUND’s finances as more students seek loans. He stated, “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.”

This new order comes at a time when there is a significant rise in unclaimed dividends. In June 2025, the Securities and Exchange Commission (SEC) reported that unclaimed dividends in Nigeria’s capital market had increased to N242 billion, up from N190 billion in 2023.

Mr Alausa made it clear that this directive does not include properties that the EFCC has recovered or seized. He explained that only liquid funds that are legally cleared and not in dispute will be sent to NELFUND.

“Note, and the President was very clear, not seized properties, or recovered looted funds, but liquid funds from the EFCC will now be transferred to NELFUND,” he said.

The minister added that the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has been asked to work with the Ministry of Education. This is to solve any legal or administrative issues that might delay this new funding plan.

Mr Alausa stated that this decision aligns with Mr Tinubu’s promise to improve access to higher education through student loans. This announcement comes as NELFUND is broadening its student loan program.

NELFUND was set up under the 2024 Student Loans (Access to Higher Education) Act. It provides loans to eligible students in Nigerian tertiary institutions. As of 8 August, NELFUND reported it had disbursed over N322 billion for school fees and upkeep allowances to more than 1.6 million students across the country.

As of March, the fund also extended the application deadline for the 2025/2026 academic session. It has given out a total of N183 billion in student loans, covering fees for institutions and upkeep allowances for the students receiving support.