The Federal Executive Council (FEC) has approved the release of eligible funds recovered by the Economic and Financial Crimes Commission (EFCC) for use in Nigeria’s education sector.
The Minister of Education, Dr Tunji Alausa, disclosed this after Wednesday’s FEC meeting in Abuja, explaining that the recovered funds would be channelled through the Nigerian Education Loan Fund (NELFUND).
Alausa said the decision was aimed at strengthening NELFUND’s financial capacity as demand for student loans and other education-related support continues to grow.
According to the minister, President Bola Ahmed Tinubu directed that eligible liquid funds recovered by the EFCC and legally available to the Federal Government should be transferred to NELFUND.
The directive, however, does not apply indiscriminately to every asset seized by the EFCC. The minister clarified that properties or assets still involved in legal proceedings are not covered by the arrangement.
He explained that the policy is focused on liquid funds that have completed the necessary recovery and forfeiture processes and are available for government use.
Unclaimed Dividends, Dormant Funds Also Targeted
The FEC also approved the use of certain unclaimed dividends and funds held under dormant-account arrangements to provide additional financing for NELFUND.
Alausa said the move would help the student-loan agency meet its increasing financial obligations as more Nigerian students seek assistance under the programme.
The decision represents another step by the Federal Government towards expanding funding for tertiary education and improving access to higher education for students who may otherwise struggle to meet the cost of their studies.
N50bn Recovery Previously Allocated to Student Loans
The latest decision builds on an earlier directive by President Tinubu in 2024 to allocate N50 billion from recovered proceeds of crime to support the student-loan scheme.
The EFCC had clarified at the time that the money was recovered public funds remitted to the Federal Government and subsequently earmarked by the President for NELFUND.
The government has also increased the use of recovered assets to support educational institutions.
In July 2026, the EFCC handed over 1,452 recovered items to the Federal Ministry of Education, including hundreds of bunk beds, mattresses and wooden beds intended for use in schools.
The latest FEC approval is expected to provide additional resources for the education sector while reducing pressure on government funding for student support.
The government said the measure reflects its broader effort to ensure that recovered proceeds of financial crimes are redirected towards projects and programmes that benefit Nigerians.
NELFUND is expected to remain a major beneficiary of the initiative as the Federal Government seeks to expand student financing and improve access to tertiary education across the country.
