By Dr Femi Akinfala
President Bola Ahmed Tinubu’s recent directive to funnel funds recovered by the Economic and Financial Crimes Commission (EFCC), unclaimed dividends from the Capital Market Fund, and balances from the Dormant Account Trust Fund into the Nigerian Education Loan Fund (NELFUND) shows purposeful leadership. Looted and idle funds unarguably rob the nation of worthy causes they could have served, putting citizens–especially the vulnerable ones–at a great disadvantage. Based on the country’s demographics estimates, young people constitute about 70 of the population, thus making up the largest share of the vulnerable group.
The surge in the young population–most of whom are under 14 years of age–unambiguously translates into the rising number of secondary school leavers and a correspondingly growing number of admission seekers to private and public tertiary institutions.
Presently, Nigeria has 606 government-owned and private tertiary institutions. Of these, NELFUND–the institutionalised student loan agency–has direct responsibility for 340 institutions, representing 56% of the country’s recognised tertiary institutions. This includes 77 federal universities, 69 state universities, 23 federal colleges of education, 47 state colleges of education, 33 federal polytechnics, and 91 state polytechnics. In the 2025/2026 academic session, NELFUND received 968,722 loan applications across the six geo-political zones, amounting to approximately ₦122 billion.
Of this, about ₦112 billion has been disbursed–representing 91.49%. Since inception in 2024, the agency has paid out ₦415 billion to student borrowers, composed of N197 billion in institutional fees, and N217 billion personal loan (upkeep allowances).
As a major governmental investment in tertiary education and vocational training, NELFUND requires a robust funding path that cannot rely solely on statutory allocation. This underscores the significance of President Tinubu’s decision to reallocate funds to the agency, boosting its liquidity to meet the needs of millions of underprivileged Nigerians.
Rather than channeling resources into recurrent expenditure, fresh borrowing, or projects with limited accountability, the President chose a strategic, long-term investment in human capital. At maturity, this will produce an educated and skilled workforce capable of driving economic growth, national development, and global competitiveness.
Like his other bold reforms–subsidy removal, exchange rate unification, and tax restructuring—this decision reflects a mindset that prioritizes the future over short-term political gains. While critics may argue that funds should have gone to infrastructure, such arguments overlook the fact that a well-educated workforce is the foundation upon which infrastructure and industry are built.
The latest capital injection into NELFUND is a testament to the President’s commitment to ensuring that no Nigerian child is denied access to tertiary education due to financial constraints. Since making that pledge three years ago, he has backed it with concrete action. This is purposeful leadership, distinct from rhetoric, partisan posturing.
While citizens have a duty to criticise the government and hold it accountable, politically partisan criticisms, targeted to mislead and incite members against the government, are antithetical to well-intentioned efforts of atriots to consolidate democracy in the country.
This brings to focus the recent Howard University controversy, following the institution’s decision to cancel admission initially offered to over 500 fresh students. The prestigious historically black American university stated the affected freshmen, many of whom were waiting for grants and scholarships, failed to meet tuition payment deadlines. The university’s message was clear: “No funding, no education.”
By contrast, President Tinubu’s administration is saying that “education first, payment later”–repayment beginning only two years after employment, with minimal deductions and no interest. This is a pro-youth, pro-reform, and pro-productivity initiative that deserves commendation.
The latest capital injection into NELFUND is a testament to the President’s commitment to ensuring that no Nigerian child is denied access to tertiary education due to financial constraints. Since making that pledge three years ago, he has backed it with concrete action. This is purposeful leadership, distinct from rhetoric and partisan posturing.
By prioritizing education funding, the administration has chosen to invest in human capital–the foundation of national development.
Credit must also go to the Minister of Education, Tunji Alausa, and NELFUND’s Board, whose tireless work ensures the scheme runs smoothly. With another four years, Nigerians can expect a government that continues to turn challenges into opportunities, scarce resources into growth, and dead capital into human capital.
The building blocks are already being set, and steady hands are needed to complete them.
Dr. Akinfala, is the Executive Director, Finance and Administration of the Nigerian Education Loan Fund (NELFUND)
