President Bola Tinubu has directed that liquid funds recovered by the Economic and Financial Crimes Commission (EFCC), alongside unclaimed dividends from designated trust funds, be channelled to the Nigerian Education Loan Fund (NELFUND) to strengthen funding for the Federal Government’s student loan scheme. The Minister of Education, Dr Tunji Alausa, disclosed this on Wednesday while briefing State House correspondents after the Federal Executive Council (FEC) meeting. He said the funds to be transferred from EFCC recoveries would be limited to unencumbered monies that are not subject to ongoing legal disputes.
Alausa said FEC also approved a presidential directive for unclaimed dividends held under the Capital Market Trust Fund and the Dormant Account Trust Fund to be channelled to NELFUND. He said the measure was intended to strengthen the Fund’s financial capacity as the number of students benefiting from the loan scheme and its funding obligations continue to grow. “The president, in his benevolence, has now directed that all funds recovered by the Economic and Financial Crimes Commission be diverted to NELFUND to continue to support its funding,” Alausa said. Unclaimed dividends are declared dividends that have not been collected by their rightful shareholders. They accumulate when investors fail to claim payments declared by companies, often because of outdated records, difficulties in tracing shareholders or other administrative issues.
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SEC has previously clarified that eligible shareholders retain rights to claim certain unpaid dividends, while funds covered by the relevant legal framework are to be transferred to the Unclaimed Funds Trust Fund pending claims. “This was also approved by FEC: that all unclaimed dividends from the Capital Market Trust Fund and the Dormant Account Trust Fund should also be directed to NELFUND, so that NELFUND will be financially buoyant to meet its growing obligations today,” he said. The minister, however, clarified that the presidential directive does not cover properties seized by the EFCC or recovered assets that are still subject to legal processes.
The move comes as the Federal Government’s student loan programme continues to expand, increasing the financial obligations placed on NELFUND. The Fund has disbursed N322.69 billion to Nigerian students and tertiary institutions since the launch of its student loan application portal in May 2024. According to the latest NELFUND Student Loan Disbursement Status Report, the Fund had processed 1,659,853 applications under the scheme. Of the total amount disbursed, N192.89 billion was paid to 319 beneficiary institutions as institutional fees, while N129.80 billion was released directly to students as upkeep allowances.
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Nigeria’s unclaimed dividends are also estimated at about N270 billion, according to the Securities and Exchange Commission (SEC), although the precise amount available for transfer under the approved framework may differ. SEC has said shareholders remain entitled to claim eligible unpaid dividends and has directed companies and registrars to continue honouring valid claims pending the full establishment and operationalisation of the Unclaimed Funds Trust Fund. NELFUND was established under Nigeria’s student-loan framework to provide financing that would enable eligible Nigerians to access higher education without being excluded because of financial constraints. The 2024 law established NELFUND as the body responsible for administering the student loan programme. Since then, NELFUND has continued to expand the programme while also adjusting its operations in response to challenges encountered during implementation.