Tinubu directs EFCC-recovered funds to student loan scheme

President Bola Tinubu has instructed that all monies recovered by the EFCC should be diverted to NELFUND.

Mr. Tunji Alausa, minister for education, made this statement Wednesday afternoon during a press conference at the State House soon after the federal executive council (FEC) session.

According to Mr. Alausa, the federal executive council had also agreed that all other unclaimed dividends from the Capital Market Trust Fund and Dormant Account Trust Fund should be diverted to the student loan scheme in order to increase its scope and efficiency.

“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.

“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.

“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.“

NELFUND was established in 2024 after Tinubu signed the Student Loans (Access to Higher Education) Act into law to provide interest-free loans to eligible students in tertiary institutions.

As of August 8, the fund said it had paid out over N322 billion for institutional fees and upkeep allowances to over 1.6 million students nationwide.