The Federal Executive Council (FEC) has approved the transfer of recovered funds from the Economic and Financial Crimes Commission (EFCC) to the Nigerian Education Loan Fund (NELFUND).
The council also approved the transfer of unclaimed dividends and funds in dormant accounts to the student loan scheme.
Minister of Education, Dr Tunji Alausa, disclosed this on Wednesday while briefing State House correspondents after the FEC meeting at the Aso Rock Villa, Abuja.
Alausa said the decision was aimed at strengthening NELFUND’s finances as demand for student loans continues to rise across the country.
He said President Bola Tinubu directed that liquid funds recovered by the EFCC should be transferred to NELFUND to support its growing financial obligations.
The minister added that FEC also approved the transfer of unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.
Alausa clarified that the directive does not cover seized properties or assets involved in legal disputes.
He stressed that only liquid and unencumbered funds recovered by the EFCC would be transferred to the education loan fund.
The minister said the move aligns with the administration’s commitment to expanding access to higher education for Nigerian students, regardless of their financial circumstances.
The development comes as NELFUND faces increasing demand from students in federal and state tertiary institutions.
Many applicants are still awaiting loan disbursements as the academic session progresses.
The exact amount expected from the transfers has not been disclosed.
However, unclaimed dividends in Nigeria’s capital market are believed to run into billions of naira, with some funds remaining unclaimed for years.
The Dormant Account Trust Fund also contains balances from bank accounts that have remained inactive for extended periods.
The Federal Government is now relying on the additional funds to strengthen NELFUND and sustain the student loan programme amid growing demand.
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