Breaking: Tinubu Redirects EFCC-recovered Funds, Unclaimed Dividends to NELFUND

• President Bola Ahmed Tinubu issued a directive channelling liquid funds recovered by the EFCC to the Nigerian Education Loan Fund (NELFUND)
• The federal executive council approved a plan to redirect unclaimed dividends from two capital market trust funds to NELFUND
• Minister of Education Tunji Alausa made the announcement after the FEC meeting on Wednesday, August 19, citing Tinubu's campaign promise on education access

FCT, Abuja - President Bola Tinubu has ordered that liquid funds recovered by the Economic and Financial Crimes Commission (EFCC) be redirected to the Nigerian Education Loan Fund (NELFUND), as part of a broader push to shore up the loan scheme's finances.

As reported by The Punch, the minister of education, Tunji Alausa, disclosed this on Wednesday, August 19, while speaking to State House correspondents after a federal executive council (FEC) meeting in Abuja.

According to The Cable, Alausa disclosed that the FEC separately approved a directive to channel unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund into NELFUND.

Read also

Group blasts Chief Judge over transfer of case challenging Tinubu's academic credentials

He stated that the move would strengthen NELFUND's capacity to meet growing demand for student loans.

Legit.ng reports that the move is expected to generate excitement among students of tertiary institutions in the country.

What Tinubu said about EFCC-recovered funds

The minister quoted President Tinubu directly, saying:

"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 was careful to draw a distinction between the types of recoveries covered by the directive. He noted that the president was explicit that only unencumbered liquid cash, not seized properties or looted assets still tied up in legal proceedings, would be transferred to the fund.

Alausa said:

"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."

Directive linked to Tinubu's education promise

Furthermore, the minister framed both approvals as consistent with a pledge President Tinubu made during his campaign to widen access to education for Nigerian students. He said the combined inflows from EFCC recoveries and dormant financial instruments would make NELFUND robust enough to honour its expanding obligations.

Read also

Tinubu’s $1trn economy target: BOI, NIPSS partner on Orange economy summit, Lai Mohammed speaks

The move to redirect unclaimed dividends follows a pattern seen in other jurisdictions, where dormant financial assets held in trust are repurposed for public benefit programmes rather than left idle. In Nigeria's case, the Capital Market Trust Fund and the Dormant Account Trust Fund hold funds that investors and account holders have not claimed over extended periods.

NELFUND, which disburses tuition and other education-related costs directly to institutions on behalf of qualifying students, has faced scrutiny in recent weeks over the handling of funds. A separate controversy involving institutions accused of collecting payments from both students and NELFUND without issuing refunds had already drawn attention to the scheme's administration ahead of this latest announcement.

Read more on NELFUND

• Nigerian students to get more funding as NELFUND confirms receiving N50bn from EFCC
• Student loan: Did EFCC "donate" N50 billion to NELFUND? Fresh facts emerge
• Student loan: UI announces refund of fees after NELFUND paid for 1,370 students

NELFUND asks students to embrace opportunity

Earlier, Legit.ng reported that Akintunde Sawyerr, the managing director/CEO of NELFUND, called on students to take full advantage of the student loan scheme, describing it as a historic initiative aimed at making higher education accessible to all, regardless of financial background.

The NELFUND MD spoke about the scheme’s 'alignment' with President Tinubu’s commitment to education.

Source: Legit.ng