Tinubu Orders Diversion of Recovered Looted Funds to NELFUND

President Bola Ahmed Tinubu has directed that funds recovered from looted public resources by the Economic and Financial Crimes Commission be channelled to the Nigerian Education Loan Fund to support student financing.

The Minister of Education, Tunji Alausa, disclosed this on Wednesday after the Federal Executive Council meeting.

Alausa said the decision was approved by the council as part of measures to strengthen NELFUND’s financial capacity and enable it to meet the growing demand for education loans across the country.

He said the Attorney-General of the Federation had also been directed to work with the Ministry of Education to develop the necessary legal framework for transferring the recovered funds to NELFUND.

The minister said funds currently tied up in court cases would not be accessed until the related legal disputes had been resolved. This, he said, was to ensure that only funds legally available for transfer were used for the education financing scheme.

Alausa praised Tinubu’s administration for its continued support for education and described the decision as an indication of the government’s commitment to expanding access to higher education.

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

The minister said the additional funds would provide NELFUND with more resources to support its operations and meet its obligations to students benefiting from the federal education loan programme.

The decision comes as the student loan scheme continues to expand, with increasing numbers of Nigerian students seeking financial assistance to meet the cost of tertiary education.

NELFUND was established to provide loans and other forms of financial support to eligible Nigerian students enrolled in approved tertiary institutions.

The government expects the additional funding from recovered assets and unclaimed financial resources to strengthen the scheme and enable more students to benefit from education loans.

The transfer of the funds, however, will be subject to the relevant legal and administrative procedures, particularly where ownership or recovery of funds remains under judicial consideration.