Key points
- President Bola Tinubu has directed the transfer of liquid funds recovered by the EFCC to the Nigerian Education Loan Fund.
- FEC also approved the transfer of unclaimed dividends from the Capital Market Trust Fund and Dormant Account Trust Fund to NELFUND.
- Unclaimed dividends currently stand at approximately N242bn.
- The directive excludes seized properties, non-liquid assets and funds subject to ongoing legal disputes.
- NELFUND says more than 1.2 million students have benefited from its interventions, with over N93bn disbursed as student stipends and more than N250bn paid as institutional fees.
- FEC also approved an entrepreneurship and innovation programme for 14 federal universities and funding augmentation for the National Library headquarters project.
Main Story
President Bola Tinubu has directed the transfer of all cleared and liquid funds recovered by the Economic and Financial Crimes Commission, alongside unclaimed dividends from two trust funds, to the Nigerian Education Loan Fund to strengthen its long-term financial sustainability.
The Minister of Education, Dr Tunji Alausa, disclosed this while briefing State House correspondents after the Federal Executive Council meeting presided over by Tinubu at the Presidential Villa, Abuja. The meeting was the council’s first sitting since June 29.
Alausa said the President directed that cash recoveries by the EFCC be transferred to NELFUND, stressing that the directive does not cover seized properties or other non-liquid assets. He added that funds still subject to legal challenges would also be excluded, with only cleared and unencumbered funds eligible for transfer.
The Issues
The move is aimed at providing NELFUND with a stronger and more sustainable funding base as demand for education financing continues to grow. The transfer of unclaimed dividends, currently estimated at about N242bn, will also require compliance with the laws governing the Capital Market Trust Fund and Dormant Account Trust Fund.
What’s Being Said
Alausa said more than 1.2 million Nigerian students had benefited from NELFUND, which has disbursed over N93bn in stipends and more than N250bn in institutional fees to public tertiary institutions.
He said the President had directed the Attorney-General of the Federation, Lateef Fagbemi, to work with the Ministries of Finance and Education and the Debt Management Office to determine how the unclaimed dividend funds could legally be transferred to NELFUND.
What’s Next
The Attorney-General, Ministry of Finance, Ministry of Education and Debt Management Office are expected to work on the legal and administrative framework for transferring eligible funds. The EFCC will also be expected to identify recovered cash that is cleared of legal encumbrances.
Meanwhile, FEC approved the rollout of an Entrepreneurship, Innovation and Business Incubation Certification Programme across 14 federal universities. The programme, already tested at the University of Lagos, is designed to provide students with entrepreneurship, innovation, digital learning, mentorship and business incubation skills.
The 14 institutions are Ahmadu Bello University, Bayero University Kano, Nnamdi Azikiwe University, Obafemi Awolowo University, University of Abuja, University of Benin, University of Ibadan, University of Ilorin, University of Jos, University of Lagos, University of Maiduguri, University of Nigeria, Nsukka, University of Port Harcourt and Usmanu Danfodiyo University.
Council also approved about N155bn in additional funding for the completion of the National Library of Nigeria headquarters in Abuja, comprising N118.309bn for construction and about N37bn for furnishing. The project, initiated in 2006, was abandoned after construction stopped in 2008.
FEC further approved the establishment of the Academy for Gifted and Talented Children by transforming the existing Suleja Academy into an autonomous institution with its own governing board and council. The Attorney-General has been directed to prepare an executive bill for transmission to the National Assembly.
Bottom Line
The Federal Government’s decision to channel eligible EFCC cash recoveries and unclaimed dividends into NELFUND represents a major attempt to create a more sustainable funding stream for student financing, while complementary education initiatives approved by FEC target entrepreneurship, infrastructure and the development of gifted Nigerian children.
