NELFUND Funding Plan Moves Beyond Crime Proceeds

 

The NELFUND funding strategy will not depend on proceeds of crime as a permanent source of money for Nigeria’s student loan programme.

Managing Director of the Nigerian Education Loan Fund (NELFUND), Mr Akintunde Sawyerr, said the organisation was examining several financing options to keep the scheme running as its obligations increase.

Speaking in Abuja, Sawyerr disclosed that NELFUND had received about 1.8 million applications, processed roughly 1.5 million, and supported about 850,000 beneficiaries. However, the fund has not yet started recovering the loans it has provided.

“It’s a loan scheme and it’s two years plus old. We’re not getting any recoveries of the loans yet.

“But how do you keep it going? We have a bill every month, as of today, of about N16 billion for upkeep alone. How do you maintain that?” he asked.

Sawyerr said the Federal Government was looking at different ways to finance the programme. These include using legally recovered and unrestricted public funds to support education.

The discussion followed President Bola Tinubu’s directive that legally cleared funds recovered by the Economic and Financial Crimes Commission (EFCC), along with money from unclaimed dividends and dormant accounts, could be considered for transfer to NELFUND, subject to existing laws.

Minister of Education, Dr Tunji Alausa, said the measure was intended to improve the financial stability of NELFUND as the student loan scheme grows. He explained that only recovered assets free from legal disputes or other restrictions would qualify.

The Attorney-General of the Federation, together with the Ministers of Finance and Education, would determine how the proposed arrangement would operate.

Sawyerr, however, rejected any suggestion that the use of recovered assets could involve plea bargaining with people accused of financial crimes.

“The President did not say, ‘Go and plea bargain or set up a plea bargain arrangement with those who have misappropriated Nigeria’s funds and then give it to NELFUND.’ He didn’t say that.

“The issues of misappropriated funds and proceeds of crime are entirely separate—completely separate to NELFUND,” he said.

He said the government was instead considering how liquid assets legally recovered after corruption cases could benefit Nigerians affected by the diversion of public resources. He identified young Nigerians seeking education as potential beneficiaries of such support.

Sawyerr stressed that proceeds of crime could not serve as a lasting answer to the fund’s financial needs.

“We can’t possibly rely on proceeds of crime in the long term,” Sawyerr said.

He noted that the NELFUND Act provides several other ways for the organisation to raise money. These include charitable donations, investments and income-generating activities.

“The law that set up NELFUND allows us to go out and seek charitable donations; it allows those who want to invest in NELFUND to invest, and it allows NELFUND itself to invest in elements that are going to bring a return and income,” he said.

Sawyerr described the proposed use of recovered assets as a short-term intervention while NELFUND develops more reliable revenue streams. He added that the fund was already receiving interest from the private sector, with potential investors recognising the broader economic and social value of expanding access to higher education.

According to Sawyerr, a sustainable student loan system could support job creation and help reduce some social problems facing the country, including crime, banditry and insurgency.

He also dismissed allegations of financial wrongdoing within NELFUND, saying there was no evidence to support such claims.

“There is no evidence of any financial misappropriation by the NELFUND,” he said.

Sawyerr explained that NELFUND makes institutional payments electronically and sends them directly to beneficiary institutions. It also pays upkeep allowances directly into students’ bank accounts.

He said the application and payment system limits human involvement and helps ensure students receive support without discrimination based on gender, ethnicity or personal connections.

Applicants must meet established requirements, including:

• A National Identification Number (NIN).
• A Joint Admissions and Matriculation Board (JAMB) registration number.
• Proof of admission.
• A bank account.

The NELFUND boss expressed confidence that any eventual transfer of recovered public funds would follow all constitutional and legal requirements.

He said: “I’m not a lawyer, but I have every confidence that the President will follow the constitutional and legal provisions,” adding, “there is absolutely no evidence today that the law is going to be sidestepped, that the National Assembly is going to be sidestepped.”

He also said that, to his knowledge, no executive order had been issued to avoid existing legal procedures.

The latest development comes as NELFUND’s financial commitments continue to grow alongside the expansion of the student loan scheme. As of August 8, the fund had paid more than ₦322 billion in institutional fees and upkeep allowances to beneficiaries across the country, according to the Federal Ministry of Education.

The NELFUND funding approach will therefore need to combine short-term government support with longer-term sources of income. The Education Minister said the proposed arrangements, together with NELFUND’s existing revenue streams, should strengthen the fund’s financial position and help it meet its rising obligations.

Can NELFUND develop enough sustainable revenue sources to support the student loan scheme for the long term?