NELFUND Hails Tinubu Over Fresh Funding for Student Loan Scheme

The Nigerian Education Loan Fund (NELFUND) has commended President Bola Ahmed Tinubu for approving new funding sources aimed at strengthening the sustainability of the Federal Government’s student loan scheme.

The Fund welcomed the President’s directive for eligible liquid funds recovered by the Economic and Financial Crimes Commission (EFCC) to be channelled to NELFUND to support its growing obligations to Nigerian students.

The Federal Executive Council (FEC) also approved the transfer of unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND, subject to the necessary legal and administrative processes.

The Minister of Education, Dr Tunji Alausa, announced the measures after Wednesday’s FEC meeting in Abuja, saying the initiative was intended to ensure that NELFUND remains financially capable of meeting the increasing demand for student loans.

Under the arrangement, the Ministers of Finance and Education, the Attorney-General of the Federation, the Debt Management Office and other relevant agencies are expected to work out the modalities and legal framework for transferring the eligible funds.

NELFUND said the new funding channels demonstrate the administration’s commitment to expanding access to higher education while creating a more sustainable financing structure for students.

The student loan scheme has expanded significantly since its introduction. NELFUND said it had disbursed more than ₦322 billion through over 1.6 million student loan applications as of August 2026.

The figure represents an increase from the ₦303.9 billion NELFUND reported as disbursed to 1,635,676 beneficiaries from 1,800,489 applications as of July 4.

Board Chairman Jim Ovia said the latest measures reinforce the administration’s commitment to making higher education more inclusive and financially sustainable for Nigerian students.

NELFUND further assured Nigerians that resources made available to the scheme would be deployed responsibly and transparently for the benefit of eligible students.

The latest development comes as the Federal Government seeks to secure long-term financing for the student loan programme amid rising applications and growing demand for financial assistance among students in tertiary institutions.

With the additional funding channels, the government is expected to have greater capacity to sustain loan disbursements and broaden access to higher education for students who may otherwise struggle to meet the cost of their studies.