The Federal Government’s plan to strengthen funding for the Nigerian Education Loan Fund (NELFUND) with unclaimed dividends and dormant account funds may require amendments to existing laws before the resources can be accessed, the Minister of Education, Dr. Maruf Alausa, has disclosed.

Alausa said yesterday that while President Bola Tinubu had directed consideration of unclaimed dividends in capital market trust funds and resources in the dormant account trust fund for NELFUND, the government must first establish the legal framework for transferring the funds.

He said the Attorney-General of the Federation had been directed to review the laws governing the two funds and determine whether amendments would be required to make the proposed transfers legally compliant.

Alausa who had earlier announced the President’s directive at the Federal Executive Council (FEC) meeting last week, stated that all “seized funds, unencumbered funds free of litigation” by the EFCC will be diverted to NELFUND to support the growing obligations of the Fund.

He, however, stressed that due process would be strictly followed. “Only funds that have been legally cleared and are free from litigation or other encumbrances will be considered for transfer,” Alausa said.

In addition to EFCC recoveries, President Tinubu also directed that fund from unclaimed dividends in the capital market trust funds, as well as funds in the dormant account trust fund, should be considered for transfer to NELFUND, subject to the laws governing the respective funds.

Alausa explained that the process will be guided by relevant legal provisions, with the Attorney-General of the Federation working with the Ministers of Finance and Education and other relevant institutions to establish the modalities for implementation.

“During that meeting as well, Mr. President directed the Minister of Finance, myself and the Attorney-General of the Federation to work on the modalities to operationalising this.

“More importantly, the Attorney-General will review the Act setting up the unclaimed dividend trust fund as well as the dormant account trust fund to see how we can be legally compliant in moving those funds,” he said.
He added that any necessary amendments to the relevant laws would be considered to ensure full legal compliance.

“If changes would have to be made to the Act, whatever, the Attorney-General is looking into that,” he said.
The minister described the directive as a significant step towards securing the long-term sustainability of NELFUND as the student loan programme continues to expand.

“This is a time that is great for Nigerian students. You have a President that believes fervently and benevolently in education and continues to push day and night to ensure that every single Nigerian youth gets the best opportunity,” Alausa said.

He noted that the new funding arrangement will complement the existing 15 per cent allocation from the development levy and position NELFUND “to be financially buoyant into the near future, into the distant future and sustainably to eternity.”

Providing an update on the scheme, Alausa said more than 1.2 million Nigerian tertiary institution students are currently benefiting from NELFUND.