By Lizzy Chirkpi
President Bola Ahmed Tinubu has directed that eligible cash recoveries by the Economic and Financial Crimes Commission (EFCC), alongside qualifying unclaimed dividends and dormant-account funds, be channelled to the Nigerian Education Loan Fund (NELFUND) to strengthen the financing of student loans.
The directive was disclosed on Wednesday by the Minister of Education, Dr Tunji Alausa, while briefing State House correspondents after the Federal Executive Council (FEC) meeting in Abuja.
Alausa said the measure was designed to strengthen NELFUND’s financial capacity as applications for the Federal Government’s student loan scheme continue to increase.
According to the minister, Tinubu directed that eligible cash recovered by the EFCC be transferred to NELFUND to support the fund’s growing financial obligations to students.
“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 said.
He added that the FEC had also approved the transfer of qualifying unclaimed dividends and dormant-account funds to NELFUND.
“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.”
Only eligible liquid funds covered
The minister, however, clarified that the EFCC component of the directive does not extend to seized properties or recovered assets whose ownership or disposal remains subject to legal proceedings.
He explained that only liquid funds that have been recovered, are unencumbered and are legally available for transfer would be considered.
“Not seized properties or recovered looted funds, but liquid funds from the EFCC will now be transferred to NELFUND,” he said.
The clarification means that assets whose ownership is being contested in court, or which cannot legally be transferred or liquidated, would not fall under the directive.
The directive also extends to funds held under mechanisms established for unclaimed dividends and dormant accounts.
Under the existing framework, qualifying unclaimed dividends are transferred to the relevant trust fund, while legitimate shareholders retain the right to reclaim funds to which they are entitled.
NELFUND funding needs grow
The latest intervention comes as NELFUND’s financial responsibilities continue to expand amid rising demand for the government’s student loan programme.
In April 2026, the Minister of Education disclosed that NELFUND had disbursed more than N200 billion to over 1.1 million students across the country.
The additional funding is therefore expected to provide greater liquidity for the student loan programme and strengthen NELFUND’s capacity to meet applications and other financial obligations.
The move also represents a further step in the Federal Government’s policy of deploying recovered proceeds of financial crimes towards public welfare and human-capital development.
However, the transfer and management of unclaimed dividends and dormant-account funds will remain subject to statutory safeguards because the legitimate owners of such funds retain rights to recover their money under the applicable legal framework.
The latest directive is consequently expected to generate renewed attention to how recovered funds, unclaimed dividends and dormant balances are managed, transferred and ultimately deployed to support education financing.
For NELFUND, the immediate objective is clear: secure a more sustainable funding base for the student loan programme as more Nigerian students seek access to government-backed higher education financing.