FG Eyes EFCC Funds to Rescue NELFUND as Student Loan Demand Soars

Federal Government plans to expand NELFUND funding with EFCC recovered funds, unclaimed dividends and dormant accounts as student loan demand rises.

Nigeria’s student loan scheme is set for a major funding boost as the Federal Government moves to expand the financing base of the Nigerian Education Loan Fund (NELFUND), potentially allowing liquid funds recovered by the Economic and Financial Crimes Commission (EFCC), unclaimed dividends and dormant account funds to support the programme.

The move comes amid rising demand for student financing. NELFUND’s August 8, 2026 dashboard showed 1,800,489 applications, with 1,635,676 processed, while more than N322 billion has been disbursed since the scheme began two years ago.

Under the Nigeria Tax Act 2025, NELFUND also has a statutory funding source through its 15 per cent share of the four per cent Development Levy imposed on the accessible profits of qualifying companies.

The proposed arrangement could provide additional financing and reduce the Fund’s reliance on discretionary government releases.

The development follows an August 4 meeting between President Bola Tinubu and NELFUND Board Chairman, Jim Ovia, and Managing Director and Chief Executive, Akintunde Sawyerr, at the Presidential Villa in Abuja.

The meeting focused on the progress, challenges and expansion of the student loan scheme, as well as the need for a sustainable financing model as demand continues to increase.

There is also a precedent for using recovered funds to support NELFUND. In August 2024, President Tinubu directed the release of N50 billion from proceeds of crime recovered by the EFCC for the student loan scheme. The EFCC later clarified that the money was recovered proceeds already remitted to the Federal Government, and NELFUND confirmed receiving the funds.

The latest proposal is focused on liquid recovered funds, meaning seized properties and other non-liquid assets would not simply be transferred to NELFUND.

The inclusion of unclaimed dividends and dormant account funds could further widen the Fund’s financing pool. However, the impact will depend on how much money is ultimately transferred, how regularly it is made available and the rules governing its use.

With applications nearing two million and disbursements exceeding N322 billion, NELFUND faces the challenge of building a funding system capable of supporting long-term growth.

For Ovia and Sawyerr, the task now goes beyond expanding access to student loans. It involves helping to establish a sustainable and transparent financial framework that can support the scheme over the long term.

Greater funding could improve access, speed up payments and reduce financial disruptions. However, increased resources must also be matched with transparency and accountability, including clear information on funds received and how they are deployed.

If successfully implemented, the broader funding architecture could help transform NELFUND from an ambitious government programme into a financially resilient national student loan institution.