President Bola Tinubu has directed the Economic and Financial Crimes Commission to channel seized funds into the Nigerian Education Loan Fund. He has also ordered the transfer of N242 billion in unclaimed dividends to the same fund. The directive was issued on August 19, 2026.
The NELFUND scheme provides interest-free student loans to Nigerian undergraduates. It was launched earlier in the administration. The fund has faced liquidity constraints since inception. Demand has outstripped available capital. Tinubu's directive aims to resolve that bottleneck. The EFCC has recovered billions from corruption cases in recent years. Those funds typically sit in Treasury Single Account limbo. The unclaimed dividends represent shares owned by deceased or untraceable investors. The Securities and Exchange Commission has held those funds for years.
The move signals a shift in how recovered assets are deployed. Previous administrations used them for budget support or infrastructure. Tinubu is tying them directly to education financing. Critics have questioned whether NELFUND can absorb the injection efficiently. The fund has been criticised for slow disbursement and bureaucratic hurdles. Students have complained about lengthy verification processes.
The directive requires the EFCC and SEC to work with NELFUND management. Legal frameworks may need adjustment to permit the transfers. The National Assembly may scrutinise the move. Opposition figures have previously accused Tinubu of centralising too much fiscal power. Supporters say the intervention will democratise access to higher education. Nigeria has over 20 million students in tertiary institutions. Most struggle with tuition and living costs.
