The Federal Executive Council (FEC) has approved measures to strengthen the financial capacity of the Nigerian Education Loan Fund (NELFund), including the transfer of unclaimed dividends and eligible recovered funds to support student loan financing.
The Minister of Education, Dr Maruf Tunji Alausa, disclosed this on Wednesday while briefing State House correspondents on the outcome of the FEC meeting in Abuja.
Alausa said President Bola Tinubu directed that all liquid funds recovered by the Economic and Financial Crimes Commission (EFCC) be channelled to NELFund, subject to relevant legal procedures, to enhance student loan financing and ensure the sustainability of the scheme.
He added that FEC also approved the channeling of unclaimed dividends in the Capital Market Trust Fund and the Dormant Account Trust Fund to NELFund.
According to him, the President directed the Ministers of Finance and the Attorney-General of the Federation, working with the Ministry of Education, Debt Management Office and other relevant agencies, to develop the modalities for transferring the funds.
The minister clarified that the directive concerned recovered liquid funds and did not include seized properties.
He explained that the Attorney-General would collaborate with the EFCC Chairman to review the legal framework governing the relevant trust funds and determine how the recovered funds could be lawfully transferred to NELFund.
Alausa said the move would provide NELFund with a stronger financial base as its responsibilities and obligations continue to increase.
He disclosed that more than 1.2 million Nigerian students currently benefit from NELFund, which has disbursed over N93 billion in stipends to students in public tertiary institutions nationwide.
He added that the fund had also released more than N250 billion for institutional fees to public tertiary institutions at both federal and state levels.
The minister described the development as part of the fulfilment of President Tinubu’s campaign promise to establish and implement a sustainable student loan scheme, recalling his commitment to passing the relevant legislation within six months of assuming office.
Meanwhile, FEC also approved the transformation of the existing Suleja Academy into an autonomous Nigerian Academy for Gifted and Talented Children.
Alausa said the institution was originally established to identify and develop gifted Nigerian children but had not been operating according to its original mandate.
Under the new structure, the academy will have its own board and governing council, while its funding will come from appropriations, endowments and donations.
The minister further disclosed that the Council approved the preparation of an executive bill by the Attorney-General for transmission to the National Assembly to provide legal backing for the establishment of the new academy.
