Tinubu orders EFCC recoveries to fund student loans: What this means for Nigerian students

• President Bola Tinubu has directed that eligible EFCC-recovered funds be channelled to NELFUND to strengthen the student loan programme.

• More than ₦200 billion in unclaimed dividends, along with dormant funds, will also be used to support NELFUND, giving the agency a larger pool of money to fund eligible students.

• The move could help NELFUND support more students, but it does not mean automatic payments. Students must still meet the requirements, have their records verified and apply for the loan.

President Bola Tinubu has directed that eligible cash recovered by the Economic and Financial Crimes Commission (EFCC) be channelled to the Nigerian Education Loan Fund (NELFUND) to strengthen the Federal Government’s student loan scheme.

The Minister of Education, Tunji Alausa, announced the directive on Wednesday after the Federal Executive Council (FEC) meeting in Abuja. 

He said the move is aimed at ensuring NELFUND has enough funding to meet its growing obligations to students. 

However, the directive does not mean that every asset seized by the EFCC will be transferred to NELFUND.

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Alausa clarified that the arrangement applies to liquid funds recovered by the EFCC, while properties and funds still involved in legal proceedings are excluded. Only funds that are legally available for transfer can be used to support NELFUND. 

The FEC also approved the transfer of unclaimed dividends held under the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.

As of June 2025, Nigeria’s unclaimed dividends stood at about ₦242 billion, according to data from the Securities and Exchange Commission (SEC).

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The new funding arrangement could give NELFUND a larger pool of money to support students seeking financial assistance for higher education.

More funding could allow the agency to sustain existing student loans and potentially accommodate more eligible applicants as demand for the scheme increases.

NELFUND has described the additional funding as support for its growing student-loan obligations. 

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However, the directive does not mean students will receive free money or automatic payments. 

Students will still need to meet NELFUND's eligibility requirements, have their records verified by their institutions and apply through the official NELFUND portal.

The development also builds on the Federal Government’s wider effort to create a sustainable funding structure for the student loan programme, rather than relying solely on annual budgetary allocations.

For students struggling to meet the cost of tertiary education, the immediate significance is that NELFUND could have greater financial capacity to continue and expand the loan programme.