NELFUND: Tinubu’s New Funding Pathway Will Educate More Students – Alausa
By Alice Etuka, Abuja
The Minister of Education, Dr. Tunji Alausa has commended President Bola Tinubu for opening a new funding pathway for the Nigerian Education Loan Fund, NELFUND, saying that this development will see more Nigerian students embracing Education.
Spokesperson to the Minister, Ikharo Attah disclosed this in a statement on Monday.
TheFact Daily recalls that the President had directed that all cleared and unencumbered funds recovered by the Economic and Financial Crimes Commission (EFCC) be channelled to NELFUND to strengthen its long-term financial sustainability and expand access to tertiary education for Nigerian students.
The President also directed that funds from unclaimed dividends and dormant accounts be considered for transfer to NELFUND, subject to the laws governing the respective funds.
Alausa described the directive as a significant step towards securing the long-term sustainability of NELFUND as the student loan programme continues to expand.
Speaking on Monday morning, August 24, 2026, Dr. Alausa said the directive would ensure that resources recovered on behalf of Nigerians are put to productive use, particularly in creating greater opportunities for young people.
He informed that only funds that had been legally cleared and free from litigation or other encumbrances will be considered for transfer.
“Together with the directives by Mr. President on the seized EFCC funds, which will now be directed to fund NELFUND, Mr. President also directed that all unclaimed dividends from the capital market trust funds, as well as funds in the dormant account trust fund, should also be moved to support the financial sustainability of NELFUND,” he said.
Dr. Alausa explained that the process would be guided by the relevant legal provisions, with the Attorney-General of the Federation working with the Ministers of Finance and Education and other relevant institutions to establish the modalities for implementation.
He added that any necessary amendment to the relevant laws would be considered to ensure full legal compliance.
The Minister said the development represents an important opportunity for Nigerian students, particularly as the administration continues to expand access to education and create pathways for young Nigerians to contribute meaningfully to national development.
Dr. Alausa expressed appreciation to President Tinubu for the political support and funding being provided to advance the administration’s education agenda.
He said the administration’s investments were already yielding improvements across the education sector, including in the quality of education, services delivered to students and the welfare of academic and non-academic staff in tertiary institutions.
He added that the government was extending these interventions to basic and senior secondary education as part of its broader effort to strengthen the education system.
“We’ve never had it so good in the education sector,” Dr. Alausa said, while thanking the President for his continued support and determination to reposition Nigeria’s education system.
The Minister said the new funding arrangement would complement existing sources of financing for NELFUND and provide a stronger foundation for meeting its growing obligations.
“But to summarise, NELFUND, beyond the 15 per cent allocation from the development levy, is now positioned to be financially buoyant into the near future, into the distant future and sustainably to eternity,” he said.
Dr. Alausa noted that more than 1.2 million Nigerian tertiary institution students are currently benefiting from NELFUND.
As of August 8, NELFUND had disbursed more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries nationwide.
NELFUND was established in 2024 after President Tinubu signed the Student Loans Access to Higher Education Act into law, providing interest-free loans to eligible students in tertiary institutions.
The Minister said the significance of the new funding direction extends beyond immediate financial assistance, as it creates a pathway through which resources recovered from the past can be transformed into educational opportunities that will shape Nigeria’s future.
He said sustained investment in education would help build the skilled and productive workforce required to drive national development and support Nigeria’s long-term economic ambitions.
Dr. Alausa therefore reaffirmed the Ministry’s commitment to expanding access to quality education and ensuring that financial constraints do not stand in the way of qualified Nigerian students pursuing tertiary education.
