Tinubu Orders EFCC Cash Recoveries, ₦242bn Unclaimed Dividends for Student Loans

President Bola Tinubu has endorsed a new financial strategy to bolster the Nigerian Education Loan Fund (NELFUND). He has directed that eligible liquid cash recoveries by the Economic and Financial Crimes Commission (EFCC) and unclaimed dividends from specific trust funds be allocated to the student loan initiative.

The Minister of Education, Dr. Tunji Alausa, shared this development while speaking to State House correspondents after the Federal Executive Council meeting at the Presidential Villa in Abuja.

Alausa specified that this directive targets cash recovered by the EFCC and excludes seized properties or other non-liquid assets.

The President has instructed that all funds recovered by the EFCC be redirected to NELFUND to sustain its financing.

₦242bn in Unclaimed Dividends

The Federal Executive Council has also sanctioned the transfer of suitable unclaimed dividends held through the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFUND.

Data from the Securities and Exchange Commission indicates that unclaimed dividends in Nigeria are around ₦242 billion. This amount has grown due to issues like outdated shareholder records, unresolved estates of deceased investors, and challenges in linking accounts to current banking details.

Alausa stated that the President directed the Attorney-General of the Federation, Lateef Fagbemi, to collaborate with the Ministries of Finance and Education, as well as the Debt Management Office, to determine the legal means of transferring these funds.

EFCC Recoveries to Support Student Loans

The minister clarified that this new arrangement does not entail an automatic transfer of properties seized by the EFCC or other non-liquid assets to NELFUND. The primary focus is on liquid cash recoveries that are legally eligible for transfer.

The EFCC has recovered substantial sums in both local and foreign currencies through its anti-corruption efforts. The government now plans to utilize these liquid recoveries to reinforce the funding of the student loan programme.

NELFUND Supports More Than 1.2 Million Students

Alausa highlighted that NELFUND is already a key financial resource for students throughout Nigeria. Presently, over 1.2 million Nigerian students benefit from this scheme.

He added that NELFUND has distributed more than ₦93 billion in student stipends and over ₦250 billion for institutional fees across federal and state-owned institutions. The minister described this development as a significant step towards broadening access to higher education for Nigerian students.

Government Begins Implementation

The Federal Government plans to work with relevant agencies to establish the legal and financial framework for transferring these funds. The Attorney-General, Ministry of Finance, Ministry of Education, and Debt Management Office will coordinate processes concerning the unclaimed dividend funds, while the EFCC will collaborate with the government on identifying eligible liquid recoveries.

This initiative aims to provide NELFUND with a more sustainable funding source as demand for student loans continues to increase. The recent directive could substantially enhance the student loan programme and lessen its reliance on annual government budget allocations.