Tinubu redirects liquid EFCC funds to the student loan scheme, while unclaimed dividends are also approved for NELFUND to support Nigerian students

President Bola Tinubu has directed the transfer of liquid funds recovered by the Economic and Financial Crimes Commission to the Nigerian Education Loan Fund in Abuja on Wednesday, August 19, 2026, as the Federal Government seeks to strengthen financing for the country’s student loan programme.

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The Minister of Education, Dr Tunji Alausa, disclosed the decision while briefing State House correspondents after the Federal Executive Council meeting.

Alausa said the Federal Executive Council had also approved the transfer of unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.

The measures are intended to provide NELFUND with additional resources as its financial obligations to Nigerian students continue to grow.

“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.

The minister, however, clarified that the directive does not cover seized properties or recovered assets that have not been converted to cash.

“Not seized properties, or recovered looted funds, but liquid funds, from the EFCC will now be transferred to NELFUND,” he said.

Alausa said the funds would include unencumbered monies that are not subject to ongoing legal disputes.

The decision represents a significant move to broaden the funding base of the federal student loan programme, which was introduced as part of the Tinubu administration’s effort to improve access to tertiary education.

The NELFUND scheme provides financial assistance to eligible Nigerian students to help cover education-related costs. Its expansion has increased the need for a more sustainable source of funding.

The Federal Government’s latest directive therefore links proceeds from recovered financial assets and previously unclaimed funds with education financing, potentially giving the scheme a stronger financial foundation.

Alausa said the decision was also consistent with Tinubu’s campaign commitment to improving access to education and ensuring that financial constraints do not prevent eligible Nigerian students from pursuing tertiary education.

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The government is expected to provide further details on the mechanism for transferring the funds and the scale of resources that will become available to NELFUND.