Tinubu orders EFCC cash recoveries, unclaimed dividends to fund student loans

President Bola Tinubu has directed that liquid funds recovered by the Economic and Financial Crimes Commission (EFCC), as well as unclaimed dividends from specified government trust funds, be channelled to the Nigerian Education Loan Fund (NELFUND).

Minister of Education, Tunji Alausa, disclosed this on Wednesday while briefing State House correspondents after the Federal Executive Council meeting presided over by the President in Abuja.

Mr Alausa said the directive was aimed at strengthening NELFUND’s finances as demand for student loans continues to grow.

“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,” Mr Alausa said.

The latest directive comes against the backdrop of a growing backlog of unclaimed dividends. The Securities and Exchange Commission (SEC) said in June 2025 that unclaimed dividends in Nigeria’s capital market had risen to N242 billion, from N190 billion in 2023.

Only liquid recoveries affected

Mr Alausa clarified that the directive does not cover properties recovered or seized by the EFCC.

He said only liquid funds that have been legally cleared and are not subject to disputes will be transferred to NELFUND.

“Note, and the President was very clear, not seized properties, or recovered looted funds, but liquid funds from the EFCC will now be transferred to NELFUND,” he said.

The minister said the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, had been directed to work with the Ministry of Education to address any legal or administrative issues that could hinder implementation of the new funding arrangement.

Mr Alausa said the decision was consistent with Mr Tinubu’s commitment to expanding access to higher education through student loans.

NELFUND expands

The decision comes as NELFUND continues to expand its student loan programme.

The fund, established under the 2024 Student Loans (Access to Higher Education) Act, provides loans to eligible students in tertiary institutions in Nigeria.

As of 8 August, NELFUND said it had disbursed more than N322 billion for institutional fees and upkeep allowances to over 1.6 million students nationwide.

As of March, the fund extended the deadline for applications for the 2025/2026 academic session, adding that it has disbursed a total of N183 billion in student loans, including fees to institutions and upkeep allowances to benefiting students.